NL Update

Nortel named in class-action suitA class-action suit alleges that Nortel Networks Corp. and its auditor Deloitte & Touche overstated revenues in 2000 and 2001. The beleaguered telecom equipment manufacturer suffered a further loss of face when it was one of seven non-American companies tossed off the Standard & Poor’s index. More details. Teleglobe receives 10 offers for assetsTeleglobe Inc. announced it has received 10 offers to buy its cores telecom business of voice and data. The company is defending itself against a lawsuit launched by several of its lenders, including the seven major banks, the Export Development Bank and the Caisse Central Desjardins du Québec. More details: http://www.newswire.ca/releases/July2002/18/c6050.html http://www.newswire.ca/releases/July2002/18/c6154.html http://www.bce.ca/en/news/releases/bce/2002/07/15/69120.html 360networks files reorganization plansTroubled fibre giant 360networks Inc. has filed reorganization plans in Canada and in the United States. The company hopes to emerge from creditor protection in September. It is under a temporary cease trading order from the Ontario Securities Commission for failing to file proper statements. Last week, the Toronto Stock Exchange announced that it is reviewing 360networks’ Subordinate Voting Shares with respect to meeting the requirements for continued listing. The company is being reviewed on an expedited basis. More details: http://www.wwfiber.com/Restructuring.asp http://www.wwfiber.com/News---Releases---Details.asp?ID165 http://www.wwfiber.com/PDF/Restructuring/Letter_To_Shareholders.pdf http://www2.cdn-news.com/newsnet/current/0719052N.html http://www.tsx.ca/en/mediaNews/newsreleases/news2876.html It’s the end of WorldCom as we know itAmerican telecom WorldCom Inc. has filed for Chapter 11 protection, the largest bankruptcy in U.S. history. The company’s Canadian operations are not affected by the move. More details. AT&T Corp. selects Canadian shareholders for purchase of AT&T CanadaU.S.-based AT&T Corp. has chosen Brascan Financial and CIBC to buy the shares of AT&T Canada Corp. the American firm does not hold. This completes the terms of an agreement signed in 1999. More details. Rogers to record significant gain on AT&T transactionRogers Communications Inc. expects to record a non-cash gain of approximately $900 million in the fourth quarter of 2002 related to AT&T Corp.’s intention to purchase public deposit receipts of AT&T Canada. Canada’s largest cableco will be redeeming its Preferred Securities and settling its Collateralized Equity Securities related to its monetizations of its investment in AT&T Canada. More details. Rogers forbearance application opposedA group calling itself the Coalition for Better Third Party Access is opposed to an application filed earlier this month by Rogers Cable Inc. seeking forbearance in relation to third party Internet access services provided by Rogers in business locations. More details. Toronto Dominion lowers telecom portfolioThe TD Bank Financial Group is reducing its corporate lending portfolio by $750 million over three years. It cites the telecom sector, where it lost $600 million, for the action. More details. Vidéotron, Northwestel strikes settledThe Communications, Energy and Paperworkers Union has settled a 10-week strike against Vidéotron Télécom ltée, agreeing to a retroactive 8.5 per cent wage increase. Northwestel and the International Brotherhood of Electrical Workers have reached a tentative settlement in their eight-week-old walkout, the telco announced in a news release. (The news release is not available online.) More details. BCI plan of arrangement approved by courtThe Ontario Superior Court of Appeal has approved Bell Canada International’s plan of arrangement (NL, July 3/02). The company hopes to close its sale of its Telecom Americas stake by July 24. More details. Telecom financial reports issuedAtlantic ILEC Aliant Inc. and cableco Rogers Communications Inc. have released their Q2 financial results, and cableco Persona Communications Inc. has released its Q3 results. Northern ILEC Northwestel and Tigertel Communications Inc. issued their annual reports. More details: Aliant Q2 results http://micro.newswire.ca/releases/July2002/18/c5464.html/84735-0 http://www.newswire.ca/releases/July2002/11/c4396.html http://www.nwtel.ca/corpo/News_release.pdf http://www.nwtel.ca/corpo/NWTELAR3.pdf http://www.newswire.ca/releases/July2002/12/c4665.html Alcatel sells Canadian product to SBC CommunicationsEquipment maker Alcatel is selling its fibre-to-the-user product to American telco SBC Communications Inc. The device is manufactured at Alcatel’s plant in Ottawa. More details.

NL Update

News | 07/22/2002 4:00 am EDT

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