If you've been following the Nortel saga, you've probably come to depend on the Ottawa Citizen for some of the best reporting on the company's descent into bankruptcy and odyssey through the process. Here's their roundup on the deal. Key noteworthy points include:* Although Avaya committed to keeping 75% of Nortel Enterprise employees overall, certain regulations about work with the U.S. government and overseas customers will require that more of the Nortel workers serving these accounts be kept. That will translate into just 60% of other North American workers being retained.
* "Standard & Poor's Rating Service warned Monday that the deal could increase Avaya debt and create integration problems. It put Avaya debt ratings on a credit watch with negative implications.
* Another interesting passage: "The [$900 million] price also shows the depressed state of Nortel assets in bankruptcy protection and the industry in the recession. Under normal business conditions, the Nortel assets likely would have sold for twice the price that Avaya is paying."
Read the whole article.
