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Nortel cuts 2Q loss on lower reorganization costs

Source : AP
Last Updated: Fri, Aug 12, 2011 03:40 hrs

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The Toronto company is in the midst of selling off its assets as it works to restructure under Canadian bankruptcy. The company said it has now sold off all of its businesses, generating roughly $3.2 billion in net proceeds that will go toward paying back its creditors.

Nortel reported a loss of $115 million, or 23 cents a share, for the three months ended June 30. That compares with a loss of $1.6 billion, or $3.15 a share, in the prior-year quarter.

The loss in the latest quarter included interest expense of $80 million. The prior-year period included reorganization items of $1.5 billion and interest expense of $75 million, among other costs.

Quarterly revenue was $1 million, down from $145 million a year earlier, when the company sold off U.S. subsidiaries.




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