2010 Sponsor Nortel goes Bankrupt

Submitted by Zig Zag on Thu, 02/03/2011 - 19:41

Vancouver Olympics suffer first sponsor bankruptcy

By BOB MACKIN, 24 Hours, Jan 14, 2009

Things just got worse for VANOC.

Nortel Networks became the first sponsor of the Vancouver 2010 Winter Olympics to seek bankruptcy protection on Wednesday. The Toronto-based company's United States subsidiary filed under Chapter 11 in Wilmington, Del. and was to make a similar request to an Ontario court under the Companies Creditors Arrangement Act. Trading of Nortel shares was halted on the Toronto Stock Exchange.

Nortel racked up a US$6.3 billion debt through Sept. 30 and has nearly US$12 billion in liabilities. It became an official VANOC supplier of network communications equipment on May 1, 2007. The deal was worth between $3 million and $15 million.

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