Nortel to Sell off GSM Businesses in Open Auction

As part­ of its ongoing dismemberment, Nortel Networks says that it plans to sell by "open auction" substantially all of its global GSM/GSM-R business. In connection with this proposed sale, Nortel also expects to transfer specified patents predominantly used in the GSM business and grant non-exclusive licenses of other relevant patents.

Nortel has filed a motion seeking the establishment of a Section 363 sale procedure with the United States Bankruptcy Court for the District of Delaware that will allow qualified bidders to submit offers for the GSM/GSM-R business. A similar motion for the approval of the sale procedure will be filed with the Ontario Superior Court of Justice.

"The proposed sale process will provide a timeline for identifying the successful bidder for our valuable GSM/GSM-R assets," said Pavi Binning, Chief Restructuring Officer, Nortel. "The process is expected to result in a formal agreement with a buyer. We have seen interest in this business during extensive initial discussions."

Details of Sale Process

Subject to approval of the bidding procedures filed with the U.S. and Canadian courts, qualified bidders will be required to submit offers for the GSM/GSM-R business by November 5, 2009, subject to any permitted extensions. Competing qualified bids are then expected to proceed to an "open auction", which, under the proposed bidding procedures, is scheduled for November 9, 2009.

Completion of any transaction will be subject to receipt of all regulatory approvals and satisfaction of customary closing conditions, as well as approval of bankruptcy courts in various countries.

Posted to the site on 1st October 2009