Globe/Bloomberg say Nortel reveals borrowing conditions
Thu 27 Dec 2001
In the News
The Globe and Mail reports in its Thursday, Dec. 27, edition that Nortel
Networks may have to earn up to $350-million (U.S.) before interest, taxes,
depreciation, amortization and other items in the fourth quarter of 2002 as
a condition of borrowing up to $1.58-billion (U.S.). A Bloomberg News
dispatch to The Globe reports that Nortel can have a maximum loss of
$500-million (U.S.) in the first quarter of 2002, $650-million (U.S.) for
the first half, and $700-million (U.S.) through nine months. However, the
loss for the full year must not exceed $350-million (U.S.). Thus, if Nortel
posts the maximum allowable loss over the first three quarters, it must
earn $350-million (U.S.) in the final quarter, according to an amended
credit agreement filed Tuesday with the United States Securities and
Exchange Commission. Nortel said Friday it would have a loss for the fourth
quarter of 2001, the fourth consecutive unprofitable period before items.
The amendments to Nortel's June, 2001, credit agreement extend the term to
Dec. 13, 2002, from June 14, 2002, and reduce the amount available to
borrow to $1.575-billion (U.S.) from $2-billion (U.S.). |
