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Nortel to sell carrier network assets in auction

Nortel Networks Corp, once North America's largest telecoms equipment maker, said on Monday that it will auction off software assets at its carrier division as it continues the process of selling its operation in pieces to pay creditors.

The Canadian firm, which filed for bankruptcy protection in January, said it would sell assets related to its next generation packet core network components. These include software used to help transfer data over existing wireless networks.

The sale will include non-patent intellectual property, equipment and other related assets, the company said in a statement. It filed a motion with courts in Delaware and Ontario to begin the sale process.

Once Canada's most valuable company, Nortel saw its stock tumble after the technology bubble burst in 2000. It then suffered a series of accounting scandals and lawsuits.

While it initially filed for bankruptcy protection, it later decided it could generate more value for creditors by selling off its assets rather than trying to restructure itself into a viable business.

Earlier this month, US and Canadian judges approved the sale of Nortel's enterprise business to US-based Avaya Inc for about $900 million.

The sale process also received a boost when Canada decided against launching a review of the $1.13 billion sale of Nortel's wireless assets to Sweden's Ericsson. (Reuters)