Wednesday, February 2, 2011

No impact on cash from Nortel accounting rule change

Earlier I posted an announcement from Nortel regarding an accounting change that would include a charge of $2B. At that time I wondered if that change would impact the cash left in the Nortel estate when it finally goes under.

I received the following comment from a memeber of the NRPC team, which indicates that there would be no impact

There is no direct cash impact on any of the country estates. Koskie Minsky has checked this out for us. This is strictly an accounting issue on how charges are allocated now that subsidiaries are being sold.

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