Leading Canadian manufacturer of telecommunications equipment went bankrupt.

The Canadian telephone equipment manufacturer Nortel filed in the U.S. state of Delaware court petition in bankruptcy, reported Bloomberg. The company went bankrupt because of the difficulty of refinancing due to the credit crisis.
Nortel now has assets amounting to one billion dollars, while its total liabilities are estimated at 12 billion. Of these, one billion will need to pay in 2011.
Since 2005, when the company was headed by the current director, Mike Zafirovski (Mike Zafirovski), Nortel net loss amounted to 7 billion dollars. Zafirovski has tried to remedy the situation a reduction of 18 per cent, but this had not yielded tangible results. The key role in the lack of competitiveness of the company has played its technology gap and work on equipment for the outdated system CDMA, while consumers have shifted to more modern standards.
Difficulties with the refinancing of the Nortel began in mid-September, when the credit crisis entered an acute phase. The rates of corporate bonds rose sharply due to lack of funds from banks.
Nortel Company was founded in 1895, starting with the release of equipment for the Montreal brewery. The company provides technical support for transkanadskoy telephone system established in 1932.