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NY-based private equity firm, MatlinPatterson Global Advisors May Bid For Nortel Networks Corp, Nokia Siemens Networks may loose.

By Amarendra Bhushan for CEOWORLD Magazine Updated:July 7, 2009

U.S. private equity firm MatlinPatterson Global Advisors is reportedly considering a bid that would end the division and sale of Nortel Networks Corp.

The company is interested in leading efforts to pull the debt-ridden technology company out from under its financial debtload.

The New York-based private equity company has emerged as one of Nortel’s biggest creditors with USD 400 million owed, or 10 percent of Nortel’s debt, and is trying to put together a consortium of investors to fund a recapitalisation of the Canadian company.

U.S. firm is concerned about Nortel’s decision to sell its wireless network business to Nokia Siemens.

MatlinPatterson considers the wireless division to be Nortel’s greatest asset.

The former telecommunications giant has be operating under court protection from creditors since January. Nortel filed for bankruptcy protection in mid-January after customers cut back on orders in the face of the economic downturn.

Any rescue bid would require a debt-for-equity swap and would need to be tabled by 24 July, the date set by the bankruptcy courts to consider the USD 650 million “stalking horse” bid by Nokia Siemens Networks for most of Nortel’s core and profitable wireless equipment operations.

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