Two more units of Nortel are heading to the auction block, in one of several developments in the company's shutdown process.
The company says bidders have until Nov. 5 to submit a bid for the GSM wireless phone technology, which is used by about 80 per cent of the world's cell phones. There will then be an auction on Nov. 9 to select a buyer.
Although there isn't a formal announcement yet, Nortel said in a court filing that it expects to hold an auction on Oct. 26 for the Carrier Networks division.
Samih Elhage, the president of that unit, is based in Ottawa and the division has a significant staffing presence in the capital.
Elhage was working to firm up the details of a bid on his division about one week or so ago. The court filing indicates we should learn more about the unit's future in the next couple of weeks.
Last quarter, the Carrier unit recorded sales of nearly $1 billion -- the highest revenues of any Nortel unit. However, that number is still down 20 per cent from last year.
In the latest filing by the Canadian monitor of the bankruptcy process, Nortel states that it is moving out of its Toronto headquarters and its $6-million leasing price tag. The company is moving into a new building near the Toronto airport with a price tag of just over $1 million per year.
Meanwhile, Sept. 30 was the deadline for creditors who wanted to file a claim for money owed by Nortel.
The biggest claim is the U.S. Internal Revenue Service, which says it is owed $3 billion in back taxes. However, Nortel disputes that claim.
Now, the U.S. bankruptcy judge has ordered the two sides to meet in court on Oct. 13 to try and resolve it.
If the claim goes ahead it presents a major new liability.
With a report from CTV Ottawa's Paul Brent
