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Nortel To Sell Switch Business

Company has a 'stalking horse' asset sale agreement for its North America, Caribbean and Latin America and Asia Multi Service Switch business for $39 million.

NEW YORK (AP) -- Nortel Networks Corp. said it has entered into a "stalking horse" asset sale agreement for its North America, Caribbean and Latin America and Asia Multi Service Switch business for $39 million in cash.

The Canada-based telecom equipment maker is in the midst of selling off divisions as it works its way through Canadian bankruptcy protection.

The deal is with PSP Holding LLC, an entity that will be fully funded at closing by Marlin Equity Partners and Samnite Technologies Inc.

Subject to the agreements, all of the Multi Service Switch employees would be able to work with the new company.

The company will file the stalking horse asset sale agreement with bankruptcy court in Delaware and a motion to establish bidding procedures.

A stalking horse sale is an opening bid backed by the company.

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