Nortel's Latin American Unit Joins Others In Chapter 11

Seven months after Canadian telecommunications equipment maker Nortel Networks Inc. sought bankruptcy protection, its Latin American and Caribbean subsidiary Nortel Networks CALA Inc. has also filed for Chapter 11, Bankruptcy Law360 reported. The Florida-based affiliate of Nortel filed its petition Wednesday in U.S. Bankruptcy Court for the District of Delaware after determining that such an action would help preserve the value of assets and contribute to Nortel's overall restructuring efforts. Nortel Networks CALA, which is a wholly owned subsidiary of Nortel, owns businesses primarily serving Guatemala and Trinidad and Tobago, as well as having a minority ownership in a Nortel affiliate serving Colombia, according to the filing. The company estimated $100 million to $500 million in assets and $500 million to $1 billion in liabilities on initial petition documents, and is seeking for the case to be administered jointly with the other Nortel cases. Read more. (Subscription required.)