News

16 January 2009

 

Bookham’s business with Nortel to continue on ordinary terms

Optical component, module and subsystem maker Bookham Inc of San Jose, CA, USA says that telecom equipment maker Nortel Networks Corp of Toronto, Canada has confirmed to it that business would continue on ordinary terms during the course of Nortel’s bankruptcy proceedings.

On 14 January, Nortel and certain of its Canadian, European, and US subsidiaries announced filing for protection under the bankruptcy reorganization laws of their respective countries, but that the filings will not disrupt its ongoing business operations. Nortel also said that it has entered into an amendment to arrangements with its key supplier that Flextronics will continue to maintain the supply chain after the start of the bankruptcy proceedings.

Nortel, directly and through Flextronics, is a key customer of Bookham’s and important to its success and growth. Bookham expects to sell product to Nortel and to be paid for future shipments on an on-going basis throughout the course of the bankruptcy proceedings and to maintain its relationship as a key supplier to Nortel.

Bookham says that it is pleased that Nortel has addressed its contract with Flextronics at the very first stage of bankruptcy to ensure the viability of this important component of the Nortel supply chain as well as the relationship with Bookham. Bookham has about $4.3m in open receivables from Nortel as of 14 January, and the firm will pursue its rights to be paid these amounts consistent with the applicable bankruptcy laws.

See related items:

Nortel files for bankruptcy protection during restructuring

Bookham reports its first profit following record revenue

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