Nortel plans to sell some carrier networks assets

The Associated Press

SAN FRANCISCO — Nortel Networks Corp. said Monday that it intends to auction off some of the company's carrier networks business assets in bankruptcy court.

Nortel said the auction will be for its next-generation packet core network components, which include software that helps transfer data over wireless networks, related non-patent intellectual property and equipment.

Nortel also anticipates granting the buyer a non-exclusive license of relevant patent intellectual property.

Nortel, a former telecommunications equipment giant that at one point accounted for one-third of the market value on the entire Toronto Stock Exchange, filed for bankruptcy protection in Canada and the U.S. in January.

The company said Monday it filed a motion with the U.S. Bankruptcy Court for the District of Delaware, seeking a sale procedure under which bidders could submit offers for the assets. It will file a similar motion with the Ontario Superior Court of Justice.

Nortel said any sale would have to be approved by courts in the U.S. and Canada.

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September 21, 2009 08:06 PM EDT

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