Guangdong Nortel (News - Alert) Telecommunication Equipment (GDNT), a Chinese joint venture between Nortel Networks Limited, Nortel China Limited and certain third parties, entered into an asset sale agreement with Ericsson (News - Alert) (China) Communications Company Ltd. According to the press release, the sale agreement for the sale of substantially all of the assets of GDNT for a purchase price of approximately $50 million in cash, subject to certain purchase price adjustments.

 Nortel subsidiaries Nortel Networks Limited and Nortel China Limited together own 62 percent of GDNT. GDNT is a Chinese joint venture between Nortel and a number of Chinese shareholders that was established in 1995. During the first quarter of 2011, Nortel will work diligently with Ericsson and the other shareholders of GDNT to close the sale. After this agreement, all the GDNT employees will be absorbed by Ericsson.

In a press release, George Riedel (News - Alert), chief strategy officer of Nortel, said that this sale is a milestone in that it is the last of Nortel's significant business divestitures, which sales have preserved both Nortel's technology innovation and its rich base of skilled employees and the sale of the GDNT business to Ericsson provides a path forward for approximately 1,100 employees.

Nortel does not expect that the Company's common shareholders or the NNL preferred shareholders will receive any value from the creditor protection proceedings and expects that the proceedings will result in the cancellation of these equity interests.

Recently, Genband has acquired the Nortal’s carrier VoIP and application solutions business. This purchase will include substantially all product platforms, all patents predominantly used, and other IP exclusively used in Nortel’s CVAS business, including softswitching, gateways, SIP applications, and TDM products and services.