Thursday, December 16, 2010

Nortel Completes Sale of Ottawa Campus

Nortel Networks completed the sale of its Ottawa Carling Campus to Public Works and Government Services Canada (PWGSC) for a cash purchase price of CDN$208 million. Nortel will continue to occupy parts of the campus while continuing work on its global restructuring, including work under the transition services agreements with the various buyers of Nortel's sold businesses.

The purchaser has exercised early termination rights to a lease held by Ciena, the purchaser of Nortel's Optical Networking and Carrier Ethernet (MEN) business. This shortens the lease from 10 years to 5 years. This resulted, pursuant to a lease with Ciena, in the payment to Ciena of US$33.5 million from funds escrowed in connection with the closing of the MEN sale.