Its creditors won’t exactly be doing cartwheels over the news, but insolvent Nortel announced additional asset sales this morning.
As reported by Canadian Press (CP) and Dow Jones Newswires, Nortel will sell some of its next-generation packet core network component assets to Japanese electronics manufacturer Hitachi Ltd. for US$10 million. The assets exclude legacy packet core components for Nortel’s GSM and UMTS businesses, but include software to support data transfer over existing and next-generation wireless networks.
As part of the deal, Hitachi will also receive “relevant non-patent intellectual property, equipment and other related tangible assets, as well as a non-exclusive license of certain relevant patents and other intellectual property.”
The transaction is expected to close in 2009, subject to approval by the United States Bankruptcy Court for the District of Delaware and the Ontario Superior Court of Justice.