Nortel files for bankruptcy protection — who's next?

One of the most popular year-end features on the blogosphere were lists of which companies would go out of business in 2009. It’s early, but we already have our first victim.

Nortel, the telecommunications equipment giant, filed for bankruptcy protection today. It could come out of this just fine, but it won’t have an easy road. AOL’s money and finance section saw this one coming way down the road.

Others on the lists (like Chris O’Brien’s from the San Jose Mercury News) from the tech world included Advanced Micro Devices, Sun Microsystems, Sirius Satellite Radio, Charter Communications and others. Palm has been named, but it may have pulled a rabbit out of its hat in the past week.

Nortel had a $107 million interest payment due this week on its $3.8 billion in debt. In 2000, the company was valued at about $250 billion — now its market capitalization is $275 million. The company expanded with the internet boom but got stuck with excess inventory in the bust of 2001 and 2002. It never fully recovered its mojo, and the economic crisis was the nail in the coffin.

This is indeed a year when we’re likely to see some familiar tech companies and brands disappear. But at least there will be others that thrive in the recession to take the place of those that have failed. Anyone have a guess on who’s next?

Trackbacks

  1. [...] Nortel filed for bankruptcy protection in January 2009, and since then it has been selling off its assets. Google’s $900 million bid will act as the floor for all other bids, so players like Apple and Intel will be allowed to submit their own higher bids after that. [...]

  2. [...] Nortel filed for bankruptcy protection in January 2009, and since then it has been selling off its assets. Google’s $900 million bid will act as the floor for all other bids, so players like Apple and Intel will be allowed to submit their own higher bids after that. [...]

  3. [...] supposed to take place on June 20, but it was delayed as other firms waited for bid approval. Nortel filed for bankruptcy protection in January 2009, and since then it has been selling off its assets. Google’s $900 million bid will act as the [...]

  4. [...] Nortel filed for bankruptcy protection in January 2009, and since then it has been selling off its assets. The $4.5 billion deal will be official as long as it receives approval from Canadian and U.S. courts, which have scheduled a joint hearing for July 11. [...]

  5. [...] and makers of Android-based devices have to pay royalties to dozens of right holders.” Nortel filed for bankruptcy protection in January 2009, and since then it has been selling off its assets. The $4.5 billion deal will be official as long [...]

  6. [...] Nortel filed for failure insurance in Jan 2009, and given afterwards it has been offered off a assets. The $4.5 billion understanding will be central as prolonged as it receives capitulation from Canadian and U.S. courts, that have scheduled a corner conference for Jul 11. [...]

  7. [...] Nortel filed for bankruptcy protection in January 2009, and since then it has been selling off its assets. The $4.5 billion deal will be official as long as it receives approval from Canadian and U.S. courts, which have scheduled a joint hearing for July 11. [...]