Bankruptcy Reorg An 18-Month Process for Nortel?Bankruptcy Reorg An 18-Month Process for Nortel?
This Gartner note contains the first projection I've seen of how long Nortel could spend in the bankruptcy reorganization process--Gartner's projecting it could be a year and a half:
January 16, 2009
This Gartner note contains the first projection I've seen of how long Nortel could spend in the bankruptcy reorganization process--Gartner's projecting it could be a year and a half:
This Gartner note contains the first projection I've seen of how long Nortel could spend in the bankruptcy reorganization process--Gartner's projecting it could be a year and a half:
While in creditor protection, Nortel will work to restructure its debt. Gartner expects this to take about 18 months, after which Nortel should emerge as a viable company, but could look different and be a possible target for acquisition.
As I noted earlier this week, the landscape doesn't look too favorable for an acquisition in the near term, but 18 months from now, things could be different.
Gartner also indicates Nortel's channel is hanging in there, for the time being at least, and they offer this advice:
Customers of Nortel enterprise products and services:
Continue to use Nortel, but make sure you are aware of the risks. Monitor service and support levels you receive and ensure you have a backup plan.
Prospective customers of Nortel enterprise products and services:
Consider Nortel, but be cautious and be aware of the risks, especially around long-term service and support.
Continue to use Nortel, but make sure you are aware of the risks. Monitor service and support levels you receive and ensure you have a backup plan.
Prospective customers of Nortel enterprise products and services:
Consider Nortel, but be cautious and be aware of the risks, especially around long-term service and support.
This advice is similar to that of Nemertes Research, though Nemertes was more cautious about prospective customers, writing, "Those considering Nortel purchases should delay procurement efforts until the restructuring picture clears."
