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Nortel 'stabilises while under bankruptcy protection'

Published on 11 Aug 2009 under category: legal

A firm currently under Chapter 11 bankruptcy protection has revealed better than expected figures for the second quarter.

Telecoms group Nortel announced an increase in revenue of 14 per cent from the previous three months, however, this remains 25 per cent down when compared to year-on-year statistics.

The firm, which filed for chapter 11 in January, also revealed that chief executive officer and president Mike Zafirovski is set to step down from his role at the company.

Mr Zafirovski commented that improvements have been made since the business took the bankruptcy protection action.

He said: "Since filing for creditor protection, the business has been successfully stabilised. Results for the second quarter demonstrate solid financial performance over the first quarter, while customer metrics remain strong."

In other news which may interest bankruptcy solicitors, earlier this week figures from the Insolvency Service revealed that personal insolvencies in England, Wales and Scotland rose in the second quarter of the year.