Nortel seeks bankruptcy protection

Struggling Nortel Networks, a major Triangle employer and North America's biggest producer of telephone equipment, filed for bankruptcy protection this morning.

The Toronto-based company said it had sufficient cash to fund its ongoing operations, which it expects to continue without interruption. Longer-term, however, the move creates uncertainty for the company's remaining 2,200 workers in Research Triangle Park. At its peak, Nortel employed 8,500 workers in RTP.

The company has bled nearly $7 billion in losses since 2005 and in November announced plans to cut an additional 1,300 jobs company-wide. Orders from customers have dropped sharply in the face of the recession.

The bankruptcy filing came a day before the company was supposed to make a debt payment of $107 million.