Is Nortel on the Verge of Filing for Bankruptcy?

| About: Nortel Networks (NT)

According to the CBC, there was a Nortel (NT) board meeting last night with the possibility of the company filing for bankruptcy protection on the agenda.

CBC could have a source inside Nortel because it’s been all over the story this week, including a feature on The Current.

There’s been a lot of talk about Nortel making a $100-milion to $120-million payment this week. It appears to be an interest payment given the next round of debt doesn’t come until 2011.

More as things unfold.

Update: Reuters is reporting that Nortel has to make an interest payment of $107-million. Meanwhile, CBC Radio is reporting that Nortel’s board was supposed to make two decisions last night: pay the interest or file for bankruptcy protection. Again, I’m not sure why the CBC is so enthusiastic about the potential for a bankruptcy filing but perhaps where there is smoke, there is fire.