|Nortel Completes Sale of Assets of the GDNT Joint Venture to Ericsson|
Posted: 13-May-2011 [Source: Nortel]
[Nortel announces Guangdong Nortel Telecommunications Equipment has completed the sale of its assets to Ericsson.]
Toronto, Ontario -- Nortel(1) Networks Corporation (OTC.BB:NRTLQ - News) announced that Guangdong Nortel Telecommunication Equipment ("GDNT"), a Chinese joint venture between Nortel Networks Limited, Nortel China Limited and certain third parties, has completed the sale of substantially all of its assets to Ericsson Mobile Data Applications Technology Research and Development Guangzhou Company Limited and Ericsson (Guangdong Shunde) Communications Company Limited (collectively, "Ericsson") for an aggregate purchase price of approximately US$50 million in cash, subject to certain purchase price adjustments. All of the employees of GDNT were offered employment with Ericsson. Nortel subsidiaries Nortel Networks Limited and Nortel China Limited together own 62 percent of GDNT. It is expected that GDNT will soon commence a process to wind down the company and deal with its remaining liabilities in accordance with Chinese law. At the conclusion of this process, any funds remaining in GDNT will be distributed to its shareholders.
As previously announced, Nortel does not expect that the Company's common shareholders or the NNL preferred shareholders will receive any value from the creditor protection proceedings and expects that the proceedings will result in the cancellation of these equity interests.
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