Where Are Nortel's Asset Sales?

Going back to September when Nortel (NRTLQ.PK) spilled the beans on its plans to sell the metro Ethernet network business, the stage has been set for the company to sell off assets as part of its efforts to become a more viable and focused company.

But aside from the sale of a small unit to Radware (RDWR), Nortel hasn’t sold anything despite a mountain of talk about MEN, the enterprise business, the Nortel-LG joint venture and the wireless unit.

Instead, Nortel is still Nortel only with thousands of fewer employees and fewer locations. (Note: Nortel did sell its Calgary campus.)

So, what’s happening at Nortel HQ? Or, more specifically, why is nothing happening? The lack of activity for a company scrambling to restructure amid bankruptcy protection is strange given General Motors (GMGMQ.PK) seems to having no problems finding buyers for some of its assets.

So, what’s keeping Nortel from wheeling and dealing? Is it the lack of good enough offers? Is it the lack of buyers? Or is it a case of management paralysis trying to figure out how the new Nortel will include?

It may be that potential buyers are watching on the sidelines while Nortel squirms strategically until things get desperate. Then, they’ll swoop in to make some bargain-basement deals.

Regardless of the reasons, the lack of deals after five months of bankruptcy protection is puzzling and troubling. It suggests Nortel’s stuck as it tries to reinvent itself - if, in fact, the plan is to emerge as a small, viable company. Or it suggests that the plan to sell off everything to appease creditors isn’t working.