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

Looking for more?

Get the best of Maclean's sent straight to your inbox. Sign up for news, commentary and analysis.