Nortel Files for Bankruptcy

The tech giant filed for bankruptcy protection Wednesday, a day before the company was due to repay a $107 million interest debt on bonds.
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Nortel Networks (NT) filed for bankruptcy protection Wednesday, a day before the company was due to repay a $107 million interest debt on bonds.

Despite a recent rally seemingly linked to rumors of a spinoff of Nortel's Ethernet business, valued at up to $1 billion, the company's stock has been trading well below its 52-week high of $13.71 and close to its 21-cent low. Nortel even received a

stern ultimatum

last month: Boost share price or get booted from the NYSE.

The Toronto Stock Exchange has halted trading of Nortel's shares, according to The Associated Press.

Nortel stock was down more than 77% in pre-market trading.

This article was written by a staff member of TheStreet.com.