In 2009, Nortel filed for bankruptcy protection in Canada and the United States, triggering a 79% decline of its corporate stock. The bankruptcy case was the largest in Canadian history, and left pensioners, shareholders and former employees with enormous losses.

What was the Nortel scandal?

Former Nortel chief executive officer Frank Dunn, former chief financial officer Douglas Beatty and former controller Michael Gollogly are accused of fraud for manipulating Nortel’s financial statements in 2002 and 2003 to trigger $5-million in bonus payments and ensure their restricted share units would pay out.

What year did Nortel go out of business?

2009
Nortel filed for bankruptcy in 2009, but five years later executives, former employees and academics are still debating what caused its demise. The Ottawa team studied Nortel’s activities from 1997 to 2009, interviewing most of its major customers as well as former executives and insiders.

Why did Nortel go broke?

Canadian telecom giant Nortel collapsed because of losing the confidence of its clients amid a culture of “arrogance and hubris.” Nortel had great technology – much of which underlies today’s telecom environment. In fact their patents, sold in 2011, continue to generate cash for spinoff firm Rockstar.

How did Nortel restate its balance sheet in 2003?

October 2003, Nortel announces its intention to restate approximately $900 million of liabilities carried on its previously reported balance sheet resulting in a reduction in previously reported net losses for 2000, 2001, and 2002 and an increase in shareholders’ equity and net assets previously reported on its balance sheet.

How much money did Nortel have when it went bankrupt?

Their company, Canada’s iconic builder of telecommunications networks, was scheduled two days later to make a $107-million interest payment on its debt (all figures U.S.). Although Nortel had more than $2 billion in cash on hand, much of it was held by foreign subsidiaries or committed to joint ventures.

When did Nortel Networks go out of business?

On Jan. 13, 2009, nearly a dozen board members of Nortel Networks gathered in a small office building near Toronto’s international airport. They had already deliberated for days about the wisdom of taking their next, history-altering step.

When was Nortel delisted from the Toronto Stock Exchange?

Just a few months later, in June 2009, Nortel’s shares – once worth more than $124 – were delisted by the Toronto Stock Exchange. The telecom giant’s collapse created ripple effects that are still being felt throughout the capital city, and the broader Canadian tech ecosystem, today. “Nortel did not need to die. That’s the bottom line.”