NORTEL FILES FOR BANKRUPTCY PROTECTION

Date Published: 14-Jan-2009

The major Galway employer and telecoms equipment giant Nortel filed for bankruptcy protection today.Canadian-headquartered Nortel employs 300 people in Mervue.Nortel said the bankruptcy protection would help it become more financially sound and competitive.The announcement comes amid mounting concerns over the firm's future after it reported rising losses ahead of a mammoth interest payment due tomorrow.A spokesman has told Galway Bay FM News the implications for Ireland and Galway employees are unclear as of yet and he had nothing further to add.The company's day-to-day operations are expected to continue without interruption.It added that today's decision was made while it has sufficient funds to run operations and to cover restructure costs.Nortel is expected to give details on the impact on its operations in Galway and elsewhere outside of Canada and the US in due course.