Nortel

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Nortel Networks Corporation , formerly known as Northern Telecom Limited , Northern Electric and sometimes known simply as Nortel , is a multinational telecommunications and data network equipment manufacturer headquartered in Mississauga, Ontario, Canada. The company was founded in Montreal, Quebec in 1895 as the Northern Electrical and Manufacturing Company. At its peak, Nortel accounts for more than a third of the total valuation of all companies listed on the Toronto Stock Exchange (TSX), employing 94,500 people worldwide.

2009 case of Nortel bankruptcy - the largest in Canadian history - left retirees, shareholders and former employees with huge losses while Nortel executives continue to withdraw "bonus retention" of US $ 190 million over a period of eight years post-bankruptcy. Nortel has filed for protection from its creditors in the United States, Canada and the United Kingdom in January 2009. In June 2009, the company announced it would suspend operations and sell all its business units. The period of bankruptcy protection is extended until February 2, 2013. As part of the bankruptcy process in the United States, Nortel Networks Inc. publishes a monthly operating report outlining cash receipts and disbursements. By 2016 Nortel has sold assets worth billions of dollars. Courts in the US and Canada approved the settlement of the bankruptcy proceeding negotiated in 2017.

Video Nortel

Histori

Origins

Alexander Graham Bell understood the technical aspect of the phone and created it in July 1874, while living with his parents on their farm at Tutela Heights, on the outskirts of Brantford, Ontario. He then refined his design at Brantford after producing his first working prototype in Boston. The first Canadian phone manufacturer, created by James Cowherd from Brantford, was a three-story brick building that immediately began producing phones for the Bell System, which led to the city's style as The Telephone City.

After Cowherd's death in 1881 that resulted in the closure of his Brantford plant, a mechanical production department was made within the Bell Telephone Company of Canada and Canadian telephone production and telephone equipment were transferred to Montreal in 1882, due to restrictions on importing telephone equipment. from the United States. In addition to the phone, four years later, the department began producing its first switchboard, 50 lane Standard Magneto Switchboard. The small manufacturing department grew annually with the growth and popularity of the phone to 50 employees in 1888. By 1890, it had turned into its own operations branch with 200 employees, and a new plant was under construction.

As the manufacturing branch grows, its production capability increases beyond telephone demand, and it faces closure for several months of the year without making other products. This is a problem because Bell Telephone Company from Canada (later renamed Bell Canada) the charter will not allow them to build other products. So in 1895, Bell Telephone of Canada was asked to release its manufacturing arm to build phones for sale to other companies, as well as other devices such as fire alarm boxes, street police call boxes, and fire extinguishers. The company was established as Northern Electric and Manufacturing Company Limited.

Northern Electrical and Manufacturing Company

Northern Electric and Manufacturing Company Limited was established on December 7, 1895, by the following member companies (or the Board of Directors): Charles Fleetford Sise Sr., President of Bell Canada - Temporary Director; Robert Mackay, trader - Temporary Director; Hugh Paton, manager of Shedden Company - Temporary Director; The Hon. Joseph Rosaire Thibaudeau, Senator - Temporary Director; Robert Archer, gentleman - Temporary Director; Charles P. Sclater, secretary - Temporary Director; Lewis B. McFarlane, manager, all cities and districts of Montreal, Quebec.

The initial equity capital was $ 50,000 at $ 100 per share, with 93 per cent held by Canada Bell Telephone Company and the remainder owned by the seven members of the above companies. The first general meeting of shareholders was held on March 24, 1896.

In December 1899, the Canadian Telephone Company purchased a cable company for $ 500,000; The Canadian Charter named it The Wire and Cable Company. Northern Electric and Manufacturing expanded its product line in 1900, producing the first Canadian wind gramophone to play flat discs. In 1911, the Wire and Cable company changed its name to Imperial Wire and Cable Company .

North Electric Company

Construction of a new manufacturing plant began in 1913 at Shearer Street in Montreal, Quebec, Canada, as preparations began for the integration of two manufacturing companies. Then, in January 1914, the Northern Electrical and Manufacturing Company and the Imperial Wire and Cable Company joined the North Electrical Company, known only as Northern Electric, and the new company opened the door to the new one. manufacturing plant in January 1915. The facility at Shearer Street was a major manufacturing center until the mid-1950s. Edward Fleetford Sise is president and brother, Paul Fleetford Sise, vice president and general manager.

During the First World War, Northern Electric produced a Portable Commutator, a one-wire telegraphic switchboard for military operations in the field. In 1922, Northern began producing, for $ 5, a "Peanut" hollow tube, which required only one dry cell battery. The use of alternating current is still under development so far. "The North Electric Peanut tube is the smallest tube made, and only draws a tenth of the ampere and is the most incredible radio frequency amplifier ever made." During the 1920s, Northern Electric made kettles, toasters, cigar lighters, electric stoves, and washing machines. In January 1923, Northern Electric began operating AM radio stations with the CHYC call letter, at Shearer Street, and many of those programs were religious services for Northern Electric employees and families in the community. In July 1923, CHYC-AM was the first radio station to provide entertainment for transcontinental riders, in a living room car equipped with a set of radio to receive broadcasts when leaving Montreal and traveling west. Then in 1920, Northern created the first speech sound system in the United Kingdom for theater in Montreal.

During the Great Depression of the 1930s, Northern Electric was affected, like most other companies. From early 1930 to late 1933, sales fell from $ 34 million to $ 8.2 million, and employee numbers dropped from 6,100 to 2,400.

Independent from Western Electric

In 1949, an antitrust lawsuit in the US forced AT & amp; T/Western Electric to sell its stake in Northern Electric to Bell Canada. AT & T spin off Northern Electric in 1956. Released from the West Electrical connection, Northern began to develop its own products. In 1953, Northern Electric produced its first television using a tube made by RCA. Bell Canada acquired 100 percent Northern Electric in 1964; through public share offerings starting in 1973, Bell ownership from Northern Electric and its successors will be reduced, although it continues to have majority control.

In 1966, Northern Electric's laboratory, Northern Electric Laboratories, began searching for the possibility of fiber-optic cable, and in 1969, began working to digitize telephone communications. Also in 1969, Northern began to enter the US market with its switching system. In 1972, opened its first factory in the US in Michigan. In 1975, Northern began to deliver its first digital switching system, one of the earliest systems to sell.

Northern Telecom, with Bell-Northern Research, in the early 1970s owner of part of the Nepean MicroSystems International manufacturer based in Ottawa, outside Ottawa.

Northern_Telecom_and_.22Digital_World.22 "> Northern Telecom and" Digital World "

In 1976, the company name was changed to Northern Telecom Limited, and management announced its intention to focus the company's efforts on digital technology. Northern Telecom is the first company in the industry to announce and deliver a complete range of fully digital telecommunication products. Its product line is branded "Digital World" and includes the renowned DMS-100, a fully digital headquarter switch that serves as many as 100,000 lines, which is a major contributor to the company's revenue for nearly 15 years.

Beginning in 1977, Nortel grew rapidly after the introduction of the DMS line of central office digital telephone switches, especially after the breakup of AT & amp; T in 1984. Northern Telecom became a significant supplier in Europe and China and was the first non-Japanese supplier to Nippon Telegraph and Telephone.

Deregulation

In 1983, due to deregulation, Bell Canada Enterprises (later abbreviated to BCE) was formed as a holding company for Bell Canada and Northern Telecom. Bell-Northern Research is jointly owned 50-50 by Bell Canada and Northern Telecom. The combined three companies are referred to as tricorporate.

As Nortel, the slim identity adopted for its 100th anniversary in 1995, the company began to dominate the growing global market for public and private networks.

Optical Boom and Right Rotate Angle

In 1998, with the acquisition of Bay Networks, the company name was changed to Nortel Networks to emphasize its ability to provide complete solutions for multiprotocol, multiservice, global networking over the Internet and other communications networks. As a consequence of the share transaction used to purchase Bay Networks, BCE ceased to be Nortel's majority shareholder.

In 2000, BCE issued Nortel, distributing Nortel ownership to its shareholders. Bell-Northern Research gradually absorbed into Nortel, as it first acquired a majority stake in BNR, and eventually acquired the entire company.

In the late 1990s, stock market speculators, hoping that Nortel would gain an increasingly lucrative profit from the sale of fiber-optic network equipment, began pushing up the company's stock price to an unheard-of level, even though the company repeatedly failed to make a profit. Under the leadership of CEO John Roth, sales of optical equipment had been strong in the late 1990s, but the market soon saturated. When the speculative telecommunications bubble of the late 1990s peaked in late 2000, Nortel would be one of the most spectacular victims.

At its peak, Nortel accounts for more than a third of the total assessment of all companies listed on the Toronto Stock Exchange (TSX), employing 94,500 worldwide, with only 25,900 in Canada. Nortel's market capitalization fell from C $ 398 billion in September 2000 to less than C $ 5 billion in August 2002, as Nortel's share price fell from C $ 124 to C $ 0.47. When Nortel's stock fell, it took many Canadian investors and pension funds and left 60,000 Nortel employees unemployed. Roth was criticized after it was revealed that he cashed his own stock options for a personal profit of C $ 135 million in 2000 alone.

CEO John Roth retired in 2001. The planned successor and chief operating officer, Clarence Chandran, had been on sick leave because of complications after stabbing 1997 in Singapore, deciding to quit, however. Chief financial officer Frank Dunn was eventually selected as Roth's permanent replacement.

After the Internet bubble

Accounting re-reporting

Frank Dunn led a dramatic Nortel restructuring, which included laying off two-thirds of its workforce (60,000 staff) and recorded nearly US $ 16 billion in 2001 alone. This had some initial impressions of success in changing the company, with unexpected profit returns reported in the first quarter of 2003. Black ink sparked a total of $ 70 million in bonuses for the top 43 managers, with $ 7.8 million going to Dunn himself, $ 3 million for chief financial officer Douglas Beatty, and $ 2 million for Michael Gollogly controller. Independent auditor Deloitte & amp; Touche suggested chairman of the audit committee John Cleghorn and chairman of the board "Red" Wilson to look into the suspicious results, who immediately hired WilmerHale law firm to review the financial statements. At the end of October 2003, Nortel announced that it intends to restate approximately $ 900 million of the obligations made on the balance sheet previously reported on June 30, 2003, following a comprehensive internal review of this obligation. The Company states that the main impact of the restatement is the reduction of previously reported net losses for 2000, 2001 and 2002 and increases in shareholders' equity and net assets previously reported on the balance sheet. A dozen senior corporate executives returned $ 8.6 million in bonuses paid under the wrong accounting. Researchers eventually found out about $ 3 billion in revenue had been ordered improperly in 1998, 1999, and 2000. Over $ 2 billion was transferred to the next year, about $ 750 million pushed ahead beyond 2003 and about $ 250 million was removed completely. The accounting scandal hurts both Nortel's reputation and finances, as Nortel spends about US $ 400 million for outside auditors and management consultants to retrain staff.

To improve its liquidity, in 2003 Nortel set up a US $ 750 million credit support facility with Export Development Canada. Walter Robinson of the Canadian Tax Payers Federation denounced the credit line, calling it "the worst corporate welfare."

On April 28, 2004 in the midst of an accounting scandal, three of Nortel's top lieutenants - Douglas Beatty, CEOs of Frank Dunn and Michael Gollogly - were dismissed for financial mismanagement. They were later accused of fraud by the RCMP. The trial begins on January 16, 2012, ending with a third release.

The US Securities and Exchange Commission (SEC) also filed a lawsuit against them and four vice presidents for civil fraud. On December 19, 2014, the remaining civil costs from the Ontario Security Commission and the SEC fell simultaneously.

Owens and Zafirovski

After Dunn's dismissal, US retiree Admiral Bill Owens - at that time a member of the board of directors - was appointed a temporary CEO. Nortel Networks then returns the Nortel name for branding purposes only (the company name is not changed). Nortel acquired PEC Solutions, a provider of information technology and telecommunications services for various government agencies and departments, in June 2005 and renamed it Nortel Government Solutions Incorporated (NGS). LG Electronics and Nortel formed a joint venture in August, with Nortel owning 50% plus one share, to offer telecommunication and network solutions in wireline, optical, wireless and corporate areas for South Korean and global customers.

Peter W. Currie, formerly Chief Financial Officer (CFO) of Royal Bank of Canada, was named CFO of Nortel in 2005, having previously served as Northern Telecom's CFO in the 1990s. Gary Daichendt, former Chief Operating Officer of Cisco Systems, was hired as President and COO, and is expected to replace Owens as CEO. Shortly afterwards, Daichendt appointed former Chief Chief Officer Cisco Gary Kunis as Chief Technology Officer (CTO). Both Gary are concerned about the overall direction of Nortel, especially when compared to Cisco, their previous company. Only three months later, Daichendt resigned after both restructuring plans and his suggestion that Owens and Currie leave the company were immediately rejected by the board of directors. Kunis stopped shortly afterward. At the end of the year, director Lynton "Red" Wilson and John Cleghorn retired from the council.

Mike S. Zafirovski, who served as President and CEO of GE Lighting and later as President of Motorola and COO, replaced Owens as president and CEO on November 15, 2005. Motorola filed a lawsuit against Zafirovski's recruitment, alleging that his new position would be destroyed. the terms of the confidentiality agreement he signed. Nortel agreed to pay $ 11.5 million on his behalf to settle the lawsuit. Nortel also paid US $ 575 million and 629 million common shares in 2006 to settle a class action lawsuit accusing the company of misleading investors about the health of the company.

Currie resigned as Executive Vice President and CFO in early 2007. In February 2007, Nortel announced plans to reduce its workforce by 2,000 employees, and to transfer 1,000 additional jobs to lower-cost work sites. The Securities and Exchange Commission filed a civil fraud lawsuit against Nortel for accounting fraud from 2000 to 2003; The fraud allegedly closes the gap between actual performance, internal targets and Wall Street expectations. Nortel settled the case, paying $ 35 million, which the Commission distributed to the affected shareholders, and reported regularly to the Commission for corrective action to improve its financial accounting.

Nortel announced plans in February 2008 to eliminate 2,100 jobs, and to transfer 1,000 other jobs to low cost centers. As part of the reduction, Nortel closed its campus in Calgary in 2009.

During the reporting of third quarter 2008 results, Nortel announced it would restructure it into three vertically integrated business units: Enterprise, Carrier Networks, and Metro Ethernet Networks. As part of its organizational decentralization, four executive positions were eliminated, effective January 1, 2009: Chief Marketing Officer - Lauren Flaherty; Chief Technology Officer - John Roese; President of Global Services - Dietmar Wendt; and Executive Vice President of Global Sales - Bill Nelson. A net reduction of 1,300 jobs was also announced. Since its stock price fell below $ 1, the New York Stock Exchange told Nortel that it would be written off if ordinary shares failed to rise above $ 1 per share within 6 months. Rumors have persisted against Nortel's poor financial health, amid the recession of the 2000s, and his bid for government funds was denied.

Liquidation

Protection from creditor

On 14 January 2009, Nortel filed for protection from creditors, in the United States under Chapter 11 of the United States Bankruptcy Code, in Canada under the Creditor's Regulatory Act of Companies, and in the United Kingdom under the Bankruptcy Act of 1986. Nortel is a company the first major technology to seek bankruptcy protection in this global crisis. Nortel had interest payments of $ 107 million the next day, about 4.6% of its cash reserves of about $ 2.3 billion. After the announcement, share prices fell more than 79% on the Toronto Stock Exchange. Export Development Canada agrees to provide up to C $ 30 million in short-term financing through existing credit support facilities with Nortel. The Canadian government refused to characterize its position in Nortel as a bailout.

Nortel initially hoped to reappear from bankruptcy, implementing a retention bonus plan in an effort to retain its top executives during the restructuring period. These bonuses, totaling US $ 45 million, are targeted at 1,000 executive positions. At the end of January 2009, Nortel announced that it would terminate its WiMAX business and its agreement with Alvarion. Nortel then sold the Layer 4-7 app delivery business to the Radware Israeli technology company for $ 18 million, after Radware initially placed the horse stalker's offer. Nortel acquired the application switching product line in October 2000 when it purchased Alteon WebSystems.

Wind-up

With a worsening recession and decline in the stock market precluding potential firms from bidding for Nortel's assets, and many of Nortel's major customers reconsider their relationship with restructuring companies, in June Nortel announced that it no longer plans to emerge from bankruptcy protection, and will seek buyers for all business units. After announcing plans to sell all of its assets, Nortel's shares were removed from the Toronto Stock Exchange on June 26, 2009 at a price of $ 0.185 per share, down from a high in 2000 when it comprised one-third of S & P/TSX composite index. Mike Zafirovski then resigned in August, and Nortel's board of directors reorganized with three members instead of nine. Nortel gave $ 14.2 million in cash compensation to seven executives in 2009. Nortel also paid $ 1.4 million for 10 ex and current directors, and paid $ 140 million for lawyers, retired, human resources and finance experts to help oversee corporate bankruptcy proceedings.

Nokia Siemens Networks made a stall offer to buy Nortel's CDMA and LTE assets for $ 650 million. At the July 21 deadline for additional bids, MatlinPatterson and Ericsson have submitted bids, and Ericsson emerged victorious in the following auction, for a purchase price of $ 1.13 billion. Avaya won an auction for Nortel's Enterprise Solutions business, including Nortel's Nortel Government Solutions and DiamondWare shares, for $ 900 million, after placing a stalking $ 475 million horse offer. In November, Nortel sold its MEN (Metro Ethernet Networks) unit to Ciena Corporation for US $ 530 million in cash and US $ 239 million in convertible notes, and its GSM business was auctioned to Ericsson and Kapsch for US $ 103 million. Hitachi bought the Next Generation Core Package assets. As insurance against an assessment in a class action lawsuit filed by a former employee, John Roth filed in December 2009 for compensation worth US $ 1 billion from Nortel, joining the US creditor list.

In February 2010, Ernst & amp; Young, a court-appointed monitor of Canada's Nortel bankruptcy proceedings, reported that the assets of Nortel's Health and Welfare Trust had a $ 37 million deficit in net assets as of December 31, 2008. This trust supports the medical, dental and life care of retired insurance benefits, as well as income support for some groups such as long term disability recipients. Also in February, Nortel negotiated a $ 57 million deal to end health care and other benefits given to former Canadian employees. Shortly after, Nortel proposed spending $ 92.3 million on retention bonuses for 1,475 employees at Nortel Business Services and Corporate groups, with $ 2.5 million in incentives for Christopher Ricaute, president of Nortel Business Services; $ 27 million allocated to Canadian employees; and $ 55 million is allocated to US employees. The proposed plan was then extended with an additional $ 27 million. Claiming that extraordinary bonus retention proposal, acting US trustee Roberta DeAngelis objected to the payment of $ 55.6 million to 866 employees. However, the court-appointed representative for a former Nortel employee, whose creditor in Ontario's bankruptcy court, has signed an agreement not to oppose the employee incentive program.

Genband purchased a VoIP and Application Solutions (CVAS) unit in May 2010, when Nortel accepted its $ 282 million stall horse offer, with an adjustment that lowered the net sale price to around $ 100 million, without a formal bidding process. Ericsson purchased Nortel shares in a joint venture with LG Electronics for US $ 242 million, forming LG-Ericsson in June 2010. Ericsson also purchased Nortel's last operating unit, the Multi-Service Switch division, in September 2010 for US $ 65 million. Ottawa Nortel campus at Carling Avenue was purchased by Public Works and Canadian Government Services (PWGSC) in October 2010 for a $ 208 million CDN cash purchase price, to serve as the new home of Canada's National Defense Base.

Nortel 53.13% stake in Turkish company Nortel Neta? acquired by One Equity Partners (OEP) and Rhea Investments for $ 68 million in December 2010.

Nortel's last major asset, about 6,000 patents and patent applications covering technologies such as wireless, 4G wireless, data network, optical, voice, Internet and semiconductor, sold for $ 4.5 billion to a consortium including Apple, EMC, Ericsson, Microsoft. , BlackBerry Limited, and Sony, awaiting approval of the US and Canadian courts. (Google has put a horse stalking initial bid of $ 900 million and then raised its bid to $ 1,902,160,540, then $ 2,614,972,128, and finally $ 3.14159 billion, which is a constant reference to Brun, Meissel-Mertens constant, and pi.) Bankruptcy filing stated that Nortel owed a former Canadian engineer $ 285,000 for an unpaid patent award.

In October 2011, Nortel's subsidiary administrators in the UK lost their appeal for canceling a court order that required them to pay Â£ 2.1 billion into a less-funded retirement plan for Nortel.

The retirement program of Nortel Networks AS is now managed by PBGC Pension Benefit Guaranty Corporation

January 2014, the agreement between Nortel Networks US and Europe divisions was approved by US courts.

However, litigation continues. In April 2016, Nortel Networks Corp. returned to court for a new round of legal arguments in a seven-year bankruptcy that had cost the creditor about $ 2 billion including attorneys' fees.

Courts in the US and Canada agreed on a negotiated settlement among competing creditors in January 2017.

Maps Nortel

Products

Nortel makes telecommunications, computer networking equipment and software. It serves both general business and communications operators (landline phones, cell phones, and cable TV operators). Technology includes telephone equipment (voice), fiber optics, local wireless, and multimedia.

Past product includes:

Nortel - T7316E - Charcoal Telephone (NT8B27J) - Wholesale Telecom ...

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Criticism and controversy

Billions goes to lawyers and accountants

In 2016, the Canadian Broadcasting Corporation, reported that lawyers and accountants receive $ 2.5 billion from Nortel's estate

Hackers have free access for years without being detected

In September 1991, Julian Assange of WikiLeaks was found in a hacking action to Melbourne Nortel's master terminal.

In 2004, it was discovered that crackers (malicious hackers) gained almost complete access to the Nortel system. Estimated in 2000, for nearly ten years they access documents including emails, technical papers, research, development reports, and business plans. The violation was not handled properly when the company started selling some of its assets in 2009, following bankruptcy filings. The Wall Street Journal reports that hackers working from Chinese IP addresses have used seven Nortel executive passwords, including former CEOs, to break through networks owned by the company.

Brian Shields, a former system security advisor for Nortel, led an internal investigation of the breach and opened the rootkit software on at least two machines in 2009 that allowed hackers to control it remotely and monitor email. Despite the original discovery in 2004 and subsequent investigations that led to rootkit detection in 2009, Nortel allegedly ignored the problem and failed to disclose it to potential business buyers. Avaya and Genband both acquire parts of Nortel, and some employees use the old Nortel machine connected to the new corporate network. Although Avaya said he had dealt with the matter, Shields said "it's nasty that Nortel did not say anything," handed it to him to inform the company of his new investigation. Nortel declined to comment on the report of The Wall Street Journal, but former CEO Mike Zafirovski, who was in charge between 2005 and 2009, claimed the company "does not believe it is a real problem."

Mr. Shields went on to tell the Canadian Broadcasting Corporation that he believes Nortel's extensive cyberattack contributed to its downfall.

Government bailout

2003

On February 16, 2003, Winnipeg Sun published an article criticizing the Canadian Federal Government for sustaining "Nortel mega-losers" through Export Development Canada (EDC). This article interviewed Walter Robinson of the Canadian Tax Payers Federation who called this EDC support "the worst company welfare." Mr Robinson is surprised that Canada who has lost billions on Nortel in the stock market will be asked for more money through their taxes to support Nortel.

2009

EDC has agreed to provide up to $ 30 million in short-term financing through existing bonding facilities. The Canadian government refused to characterize its position in Nortel as a bailout.

Illegal violation of trust in Nortel Health and Welfare

There are reports of financial irregularities at Nortel's Health and Welfare Trust. Diane Urquhart, a financial analyst, testified before a parliamentary committee that $ 100 million was lost from HWT and that a $ 37 million loan to the company has not been repaid. HWT is an unregistered trust managed by Nortel to provide health, dental, life insurance, long-term disability, and survivor income and pension transition benefits. Until 2005 Nortel fully funded disability insurance in its HWT. However, it is alleged that from then on, the HWT Governance Committee and third-party guardian, Northern Trust, violated their fiduciary duty to protect Nortel disabled employees and survivors of deceased employees by allowing Nortel to mislead more than $ 100 million of HWT for non- consistent with the provisions of HWT. On March 1, 2012, the Northern Trust continues to act as a paying agent for retired Nortel Canada.

Bookkeeping irregularities

In 2007, both the US Securities and Exchange Commission and the Ontario Securities Commission put allegations against former senior finance officials from Nortel including Frank Dunn who was fired from Nortel in 2004. Frank Dunn was promoted from the head of finance to replace John A. Roth as CEO in November 2001. According to the SEC, Dunn and three other financial officers began to forge revenue by abusing "bills and holding" transactions beginning "no later than September, 2000". The SEC said that at least one year of alleged bookkeeping occurred while John Roth was still a Nortel CEO, although no allegations were addressed to him.

Executive compensation

2001 compensation

In the article "Nortel's Roth Rakes It In" published by Light Reading, Nortel was criticized for raising his CEO's salary just days before he announced his intention to retire in May 2001. The article later stated that Nortel's share price plummeted nearly twentyfold during the Year Roth's year at Nortel's head and the number of employees dropped dramatically.

2003 compensation

In 2003, Nortel paid tens of millions of dollars in so-called "return to profitability" bonuses, mostly to a select group of senior managers. "Return of profitability" has been suspected as a result achieved by the release of $ 490 million in reserves to increase revenue.

compensation 2008

In 2008, despite continued losses, layoffs and a drop in stock prices in telecom equipment manufacturers, Nortel Networks CEO Mike Zafirovski earned a 21.5 percent salary increase to $ 10.1 million.

2009 compensation

When Nortel enters into bankruptcy proceedings, it pays a retention bonus of up to 1,000 top executives, totaling up to US $ 45 million, inviting criticism as the company withholds severance payments for laid-off employees prior to the creditor's application. Nortel continued with thousands of additional layoffs without severance pay, and pension funds remained underfunded while Nortel paid $ 14.2 million in cash to seven executives. Nortel also paid $ 1.4 million for ten former and current directors, and paid $ 140 million for lawyers, pensions, human resources and financial experts helping oversee the bankruptcy process of the company.

2010 compensation

In a US court filing on February 11, 2010, Nortel proposed to spend $ 92.3 million on retention bonuses for 1,475 employees in Nortel's Business and Corporate Services Group. According to plan, Christopher Ricaurte, president of Nortel Business Services, will receive $ 2.5 million in incentives. Overall, Canadian employees qualify for $ 27 million, US employees $ 55 million, and about $ 10 million will go to others. The proposed plan came in the same week, Nortel negotiated a $ 57 million deal to end health care and other benefits for former Canadian employees. Claiming that extraordinary bonus retention proposal, acting US trustee Roberta DeAngelis objected to the payment of $ 55.6 million to 866 employees. However, the court appoints representatives for former Nortel employees, whose creditors in Ontario's bankruptcy court, have signed an agreement not to oppose employee incentive programs.

Treatment of retired Nortel

On June 23, 2010, News and Observer published a story that criticized the retired medicines they had received from their former employer, Nortel. According to the article, Nortel has asked federal courts to stop medical coverage, prescription drug coverage, long-term disability, and life insurance from 4,000 retirees and dependents, claiming its benefits weighed on the company $ 2 million per month. Nortel blames corporate creditors for this decision.

file Nortel ex-CEO as creditor looking for $ 1 billion of bankruptcy

In the middle of the decade several class action suits were filed against John Roth and others, by former employees who felt that their 401K company plans had been exhausted by misinterpretations by the defendant. They claim they were tricked into investing in Nortel shares, when those who encouraged them to do so allegedly learned that the company was ill. John Roth left Nortel in 2001 with more than $ 130 million.

In 2009, Mr. Roth filed a $ 1 billion claim, which aims to become a creditor for Nortel's assets along with all other Nortel employees, in the case of a successful class action lawsuit.

Conflict of interest

During Nortel's 2002 annual shareholders' meeting held in Halifax, Nova Scotia, several shareholders (including Robert Verdun) complained about non-weapon relationships with service providers such as director Yves Fortier, who provided legal services to Nortel while sitting on his board, and Nortel's auditors , Deloitte & amp; Touche LLP, which paid $ 15 million for non-audit services.

Norstar M Series Archives - Wholesale Telecom Inc.

src: wholesaletele.com

Legacy

E-MetroTel (NewNortel)

A group of Nortel alumni have created their own company, named E-MetroTel, to continue developing Nortel products into next generation product lines called UCX. Based in Plano, Texas, this company consists of a group of Nortel engineers and developers working on Nortel Meridian 1, CS1000, CS2100, Meridian Norstar, Business Communications Manager, and SCS platform, while working in Nortel. They offer support for some Nortel products, such as Meridian1, CS1000, and BCM (Business Communications Manager)/Norstar platforms, including hardware and phones.

Nortel PBX and Key System customers can reuse their phones, line cards and cabinets with their PBX UCX solutions. UCX Supports Nortel Digital (TDM), standard analog set, and IP Phones on Cloud (Hosted), Virtualized or Appliance. A WebRTC Softphone based on the original Nortel i2050 and instant messaging chat programs have been integrated into the UCx platform as well. In BCM/Norstar mode, the Nortel feature code has also been retained in UCx, and can be accessed using a dedicated feature button.

Nortel Nevada (2000) - 2nd | satishpatel98 | Flickr

src: c1.staticflickr.com

References

Foot Records

Quote

Bibliography

src: www.commsgroup.com

External links

Official website
Nortel Networks Inc., a US subsidiary

Source of the article : Wikipedia

Minggu, 17 Juni 2018