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Northern Telecom becomes Nortel Networks
Northern Telecom becomes Nortel Networks after acquiring Bay Networks. The company says its future is in internet and communication networks. -
The glory days
Global revenue hits $30 billion and Nortel accounts for more than one-third of the value on the Toronto Stock Exchange. The company employs 94,500 worldwide, with almost 26,000 employees in Canada. -
Tech downturn hits hard
The tech downturn hits Nortel hard as it reveals plans to trim its workforce to 35,000, keeping around 10,000 employees in Canada. -
Questionnable accounting
An external audit of Nortel’s financial statements finds questionable accounting practices. The company goes on to restate $900 million in liabilities. Investigations would ultimately find some $3 billion had been improperly recorded by company bookkeepers. -
Senior execs fired
CEO Frank Dunn and other senior Nortel executives are fired for financial mismanagement. Dunn and other company officials are later charged with fraud. -
Bankruptcy
Nortel files for bankruptcy protection from creditors in Canada, the United States and the United Kingdom. The company says it will eventually emerge from bankruptcy protection. -
Payouts
Nortel reveals a plan to pay up to $45 million in bonuses to nearly 1,000 executives in order to keep them with the company as it restructures. -
Pension woes begin
Ontario and U.S. courts allow Nortel to pay the $45 million in bonuses. Pension holders express anger at the deal. -
Sale of wireless unit
Nortel announces the sale of its wireless unit to Nokia Siemens. The company says it will not emerge from bankruptcy protection and will sell its remaining assets. -
Quebec steps in
Quebec says it will cover the pensions of Nortel workers in the province for five years if the company’s benefit plan is eliminated. -
Ontario adds money to the pot
Ontario injects money into the provincial pension benefits guarantee fund, ensuring Nortel pensioners will receive their first $1,000 of monthly income if their pension plan collapses. -
Bill passes to secure pensions
Private member’s Bill C-501 passes second reading and is sent to committee. The bill would give pensions secure status when companies enter bankruptcy protection or go out of business. The current bill does not apply to Nortel pensioners.