Airvana To Get $39.6M Nortel-related Payment
CHELMSFORD, Mass. (AP) ¿ Airvana Inc., which supplies products used by wireless operators, said Friday it will get a $39.6 million payment for outstanding invoices related to products and services it sold to Nortel Networks Inc. before Nortel filed for bankruptcy protection.
Airvana shares jumped 47 cents, or 7.9 percent, to $6.42 in afternoon trading.
Airvana said it will get the payment from Telefon AB LM Ericssson as that company finishes its purchase of Nortel's CDMA business. Airvana's contract with Nortel will go to Ericsson.
Airvana said $36.4 million of the payment is for product and service bills and $3.2 million is interest.Canadian telecom equipment maker Nortel filed for bankruptcy protection in the U.S. and Canada in January, a day before it was slated to make a $107 million debt payment. Since then, the Toronto-based company has been selling its operations off piece by piece.
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