Nortel reportedly preps bankruptcy filing

Nortel is expected to file for bankruptcy and be sold off in parts.

According to the Globe & Mail, Nortel will file for bankruptcy as early as today. The news isn't shocking given that Nortel considered bankruptcy as an option last month. The paper reports:

Nortel's board of directors was meeting last night to deal with a financial crisis, as the economic downturn translates into a sharp drop in orders from phone company clients. The telecom-hardware manufacturer failed to find buyers for a number of divisions that were put up for sale in September, and faces the prospect of paying $107-million (U.S.) of interest on its debts tomorrow.

“It is an iconic Canadian name and there will be a great national grieving over this,” said one person familiar with Nortel's plans.

Nortel, which has been struggling for years, is likely to file for bankruptcy in Toronto and an undisclosed U.S. location.

The fall is from $850 a share (briefly) to 28 cents or so is breathtaking (click to enlarge):