Nortel Announces US$750 Million Facility, Seeks 5-1 Reverse Stock Split

Nortel Networks has entered into an agreement with Export Development Canada (EDC), a financially self-sustaining Canadian federal Crown corporation that provides trade finance and risk management services, for up to US$750 million in performance-related support. The EDC Master Facility covers certain Nortel Networks obligations arising out of standard business activities including letters of credit, letters of guarantee, indemnity arrangements, performance bonds, surety bonds, receivables sales, securitizations, and similar instruments issued or entered into for the benefit of Nortel Networks.

Nortel Networks also announce plans to seek shareholder approval for a five-to-one reverse stock split.
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