Report: Nortel Hires Bankruptcy Counsel

The Wall Street Journal reports this morning that Nortel Networks Corp. (NT) "has sought legal counsel to explore bankruptcy-court protection from creditors in the event that its restructuring plan fails." Nortel spokesman Ronald Aepian says the company has engaged advisors but says "no bankruptcy filing is imminent" and the company remains focused on implementing a restructuring outlined on Nov. 10.

The Journal story (subscribers can read it here) says the telecommunications equipment company has also explored the possibility of assistance from the Canadian government. Bloomberg also has a summary.