From Industry Minister Tony Clement’s otherwise rather bland news release on Nortel this morning, this interesting line:
“It is important to note that Nortel is filing for court-supervised restructuring under the CCAA, not bankruptcy. Nortel has stated that it has every intention of emerging from this restructuring under the CCAA as a viable business. We will monitor its progress closely.”
Clement also mentions in his release that the federal Export Development Corporation has provided $30 million in short-term financing to Nortel and is open to doing more “in conjunction with other financial institutions.”
Well, $30 million isn’t much of a start for a mess like Nortel’s, but does Clement’s statement amount to the beginnings of a hint that the feds are interested in making a more sizeable contribution to the company’s survival? Is there any public lifeline money left over after the auto bailout? After all, one has to ask: why autos (and maybe lumber and cattle and…) and not telecommunications?
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