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Why Nortel didn’t get a bailout

Government was left to wonder what recovery plan it would be funding


 

It’s not that the telecom giant failed to  submit a plan, says today’s Ottawa Citizen. It’s that they submitted a whole  bunch of plans. Plans that would see big chunks of the  company sold off. Plans that would keep it largely intact.  Plans that banked  on a quick recovery in telecommunications. Plans that assumed the industry  would remain stagnant. The question for government officials was what plan it  would be funding to the tune of, oh, $1 billion. It sounds like they made the  right call in letting Nortel Networks slide into bankruptcy protection. The  company’s leadership can hardly ask Ottawa for money to fix itself if it can’t  settle on a coherent recovery strategy.

Ottawa Citizen



 
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Why Nortel didn’t get a bailout

  1. I am sure there are a number of Nortellers out there who can confirm or deny, but I am given to understand that the real blood letting hasn’t occurred because the big boys and girls haven’t hammered out their bonus structure yet. It, of course, will be designed around cost savings. You can’t get your bonus if you save costs before it’s agreed that’s how you will be compensated, so the axe is suspended and is just awaiting agreement to how they all will be rewarded for letting it drop.

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