Nortel Seeks Advice on Bankruptcy: Report

Nortel Networks (NT Quote) has sought legal counsel to explore bankruptcy-court protection from creditors in the event that its restructuring plan fails, the Wall Street Journal reports, citing people familiar with the situation.

The Toronto company has been grappling with plummeting sales for its wireless gear and as the credit crunch hobbles the sale of key assets.

Ronald Alepian, a spokesman for Nortel, said that "no bankruptcy filing is imminent," but added that the company has engaged several advisers to help it chart a way forward, the Journal reports. "We remain focused on carrying out the restructuring we outlined on Nov. 10 to cut costs," he said. ...