Nortel Backing Out of Olympic Sponsorship?

The downturn of the economy is affecting a lot of people, but VANOC still felt confident that all the companies that signed on as Olympic sponsors would come through with the support and cash that they promised when they first signed on. Unfortunately for the organizing committee, things aren't exactly going as planned.

The first Vancouver 2010 Winter Olympics sponsor to file for Chapter 11 bankruptcy is Nortel Networks. This doesn't necessarily mean that Nortel will not be fulfilling its end of the bargain for the 2010 Games, but things aren't exactly looking rosy at this point. If Nortel's bankruptcy goes through and, worse comes to worst, it folds altogether, VANOC will find itself with one fewer sponsor.

For now, trading of Nortel stock on the Toronto Stock Exchange has been halted. Nortel has nearly $12 billion in liabilities at this point and, well, it can't pay it. The original deal with VANOC is worth between $3 million and $15 million.

Source: EdmontonSun

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Nortel Backing Out of Olympic Sponsorship?

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