Long-struggling Nortel files for bankruptcy (AP)

TORONTO - Telecommunications equipment maker Nortel Networks Corp . filed for bankruptcy protection in Canada and the U.S. on Wednesday, becoming the first major technology company to take that step in this global downturn.

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Facing a sharp drop in orders from phone companies, Nortel filed for court protection a day before it was due to make a debt payment of $107 million. Protection from its creditors would give the company more opportunities to explore restructuring options or sell off assets. Some help already is coming from the Canadian government. The long-struggling Toronto-based company said in a release that it had been in the process of a turnaround since late 2005, but "the global financial crisis and recession have compounded Nortel's financial challenges and directly impacted its ability to complete this transformation." "Nortel must be put on a sound financial footing once and for all," Nortel's chief executive, Mike Zafirovski, said in the statement.

Full Story: Long-struggling Nortel files for bankruptcy (AP)