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Non-Tech : Le coin des shorteux -- Ignore unavailable to you. Want to Upgrade?

To: koalayan who wrote (72)	10/21/2002 2:32:40 PM
From: LaFayette555	Read Replies (1) \| Respond to of 79

Incroyable le move sur nortel depuis quelques jours ! un double. The National Post reports in its Saturday, Oct. 19, edition that Gimme Credit analyst Carol Levenson raised questions Friday about Nortel Networks liquidity and said the company breached a bank covenant in its third quarter by not meeting minimum earnings requirements. The Post's Kevin Restivo writes that Ms. Levenson said she figures the third quarter loss announced Thursday, "even after adjustments for special items, meant Nortel fell short of its rather modest EBITDA covenant." She said: "This will leave the company in a significantly weaker liquidity position while its cash flow remains solidly in the red. As Nortel's cash continues to dwindle, we anticipate at best a very slender cushion remaining after next year's cash uses." The Post says a covenant breach could further limit Nortel's flexibility as it struggles to regain profitability. Nortel said on Thursday it will let an undrawn $1.5-billion (U.S.) credit facility expire in December. Nortel anticipates ending the year with $3-billion (U.S.) in cash, which would mean an unsustainable cash burn rate of $1.2-billion (U.S.) per quarter, said Ms. Levenson. Analysts say Nortel is losing the confidence of lenders. (c) Copyright 2002 Canjex Publishing Ltd.