Nortel filed for bankruptcy today in the U.S. and Canada. In its Chapter 11 petition in Delaware, U.S. operating unit Nortel Networks Inc. said it had assets of $11.6 billion and debt of $11.8 billion as of Sept. 30. The company had about $2.3 billion in cash on that date, according to a quarterly report to shareholders.
India companies have less exposure to this Canadian Giant.
The company which has maximum exposure is Sasken Comm. Nortel has arround 10% stake in Sasken. This is one company which can be affected maximum.
Infosys , TCS and Wipro also have less exposure to Nortel.
Nortel also provides equipments to BSNL, RCom and Bharti Airtel but this segment would not be affected as it is a profit making one.
Nortel has $2.3 billion of cash reserves and could have survived till 2010. But then too it filed for bankruptcy in USA, Canada and Europe.
PS - Indian companies don't have much exposure on Nortel. Some effect may be seen on Indian Companies. But Satyams effect will last longer !
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