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Technology Stocks : Nortel Networks (NT) -- Ignore unavailable to you. Want to Upgrade?

To: Qualified Opinion who wrote (14285)	11/22/2004 11:20:04 AM
From: The Ox	Respond to of 14638

Nortel Gets EDC Extension -------------------------------------------------------------------------------- TORONTO -- Nortel Networks Corporation (NYSE:NT)(TSX:NT) today announced that its principal operating subsidiary, Nortel Networks Limited ("NNL"), has obtained a new waiver from Export Development Canada ("EDC") under the EDC performance-related support facility (the "EDC Support Facility") of certain defaults related to the delay by the Company and NNL in filing their respective 2003 Annual Reports on Form 10-K, Q1 2004 Quarterly Reports on Form 10-Q and Q2 2004 Quarterly Reports on Form 10-Q (collectively, the "Delayed Reports") and the expected delay in filing their respective Q3 2004 Quarterly Reports on Form 10-Q (the "Third Quarter Reports") beyond November 24, 2004, in each case with the U.S. Securities and Exchange Commission (the "SEC"), the trustees under the Company's and NNL's public debt indentures and EDC. The waiver also applies to certain additional breaches under the EDC Support Facility relating to the delayed filings and the planned restatements and revisions to the Company's and NNL's prior financial results (the "Related Breaches"). The new waiver from EDC will remain in effect until the earlier of certain events including: -- the date on which the Delayed Reports and the Third Quarter Reports have been filed with the SEC; or -- December 10, 2004. NNL's prior waiver from EDC, previously announced on October 29, 2004, was set to expire on November 19, 2004. As previously announced, the Company and NNL are targeting a filing date for the Delayed Reports within 30 to 60 days of November 11, 2004. The Company expects that it and NNL will file the Third Quarter Reports as soon as practicable thereafter. There can be no assurance that the Company will be able to file the Delayed Reports and Third Quarter Reports by December 10, 2004. If the Company and NNL fail to file the Delayed Reports and the Third Quarter Reports by December 10, 2004, EDC will have the right, on such date, unless EDC has granted a further waiver in relation to the delayed filings and the Related Breaches, to terminate the EDC Support Facility, exercise certain rights against collateral or require NNL to cash collaterize all existing support. If the Company and NNL fail to file the Delayed Reports and the Third Quarter Reports by December 10, 2004, there can be no assurance that NNL would receive any further waivers or any extensions of the waiver beyond its scheduled expiry date. In addition, the Related Breaches will continue beyond the filing of the Delayed Reports and the Third Quarter Reports. Accordingly, EDC will have the right (absent a further waiver of the Related Breaches) beginning on the earlier of the date upon which the Delayed Reports and Third Quarter Reports are filed and December 10, 2004 to terminate or suspend the EDC Support Facility notwithstanding the filing of the Delayed Reports and the Third Quarter Reports. While NNL expects to seek a permanent waiver from EDC in connection with the Related Breaches, there can be no assurance that NNL will receive a permanent waiver, or any waiver or as to the terms of any such waiver.