Nortel US Operating Report

Docket #3835 on the Epiq Website contains a copy of Nortel US's latest operations report. According to the report the operating revenue for June 2010 was $12M US. A far cry from the multiple hundreds of millions of dollars per month that was normal in the last years that I worked there.

The total assets of NNI is $1,642M US ,and the total liabilities is $5,923M US.

Within those liabilities there is $5,583M US subject to compromise. These include $206M trade and other accounts payable; $377M intercompany A.P.; $125M restructuring; $3,391M NNI debt guarantee; $183M long term debt; $36M Financial Obligations; $426M pension obligations; $293 post retirement obligations other than pensions; $127m Notes and Interest Intercompany; and $59M other.

As of June 30,2010 NNI has received 7,316 claims asserting approximately $16,369M in outstanding claims. Certain claims may be duplicated in multiple jurisdictions or may be overstated, or may be erroneous. NNI has an ongoing process to investigate filed proof of claims to determine legitimacy.

Divestiture proceeds received by Nortel amounts to $3,083M, of which $2,797 is held in escrow and $214 from the sale of LGN is included in restricted cash reported by NNL. A further $239M is expected to be received from the sale of various assets.

The following is a summary of the various sales:

$1,070M CDMA and LTE
$908M ES and NGS
$616M Optical and Carrier
$214M LGN
$155M CVAS
$88M GSM
$18M Layer 4-7
$10M Packet
$4M other.