Nortel Networks is taking heat from suppliers who say its bankruptcy being overseen by a U.S. court doesn’t consider how its own businesses could be affected.
JDS Uniphase, which is based in California but originated in Ottawa, says the process proposed by the telecom equipment maker when it sought protection from its creditors last month will take too long and contains no protections for Nortel’s suppliers.
JDS Uniphase, which has sometimes been the world’s biggest supplier of optical technology for communications networks, also addressed concerns that it’s being left out in the dark by Nortel because the technology giant doesn’t plan to share information on the bankruptcy process. JDS worries it is “likely to be left in limbo for four months with no benefit in information or analysis as a result.”
“Given JDSU’s experience to date, this is worrisome — the debtors (Nortel) have taken the position thus far that they need only provide information that they, not the claimants, deem relevant.”
Nortel defended its position in an email response from spokesman Mohammed Nakhooda. “Efforts are taking place across Nortel to establish a sound and fair operating cadence with suppliers,” he said.
“JDSU is an important partner, and we are in discussions with them on a regular basis.”
