Nortel's CEO has moved to try to re-assure customers that they should stick with the company following its chapter...
In a message to customers and partners, CEO Mike Zafirovski says, "Nortel is filing for creditor protection in Canada, the United States and Europe in order to undertake a comprehensive business and financial restructuring.
"I firmly believe these are the right steps toward a solution for our company. This process will enable Nortel to become the highly focused and financially sound communications leader it should be."
He stressed, "Most importantly, Nortel is still very much in business and our commitment to customers remains unwavering. We will continue to invest in leading edge R&D to deliver the value our customers expect from us."
He said the bankruptcy protection move would "put Nortel on sound financial footing once and for all. It will allow us to deal decisively with our cost and debt burden, restructure our business and narrow our strategic focus in an effective and timely manner".
Nortel has not recovered since being affected by the dot.com bubble burst and the financial fraud discovered in its results going back some years. Since then, it has continued to shed thousands of jobs.
With the recession continuing and the chapter 11 move expected to result in further attempts to cut operational costs, more jobs cuts are expected to result.
Companies with Nortel service contracts may start to wonder who will be left to deliver the quality of service they are paying for.