Nortel

Nortel Networks is a Canadian phone equipment maker that filed for bankruptcy protection in the Ontario Superior Court of Justice in Toronto, on 14 January 2009. The filing was made ahead of a $107 million interest payment due on 15 January. Nortel's US subsidiary made a chapter 11 filing in the US bankruptcy court in Delaware, and its UK arm also filed for protection. According to a November 2008 10Q filing, the company held approximately $4.4 billion in total outstanding debt.

Having triggered a credit event under its credit default swaps, a credit settlement auction on 10 Feburary 2009 determined CDS recoveries for Nortel Corp (Canadian parent company) at 12 points, and those of Nortel Ltd (US subsidiary) at 6.5 points.