Xeta Comments on Nortel

Xeta Technologies has been in touch with officials at Nortel Networks Corporation following Nortel’s Chapter 11 reorganization bankruptcy filing on Jan. 14.
Xeta provides maintenance services to large enterprise customers on behalf of Nortel.
“Nortel is an important business partner of Xeta,” said Greg Forrest, Xeta Technologies CEO. “We stand ready to support Nortel and our Nortel customers through this process.”
Xeta estimates that the current annualized value of these contracts is about $3 million, which Xeta will continue to support. In addition, the company estimates that it has about $500,000 in accounts receivable due from Nortel that precedes the date of Nortel’s bankruptcy filing, the balance of which is current; and about $100,000 in January services not billed as of the date of the filing.
Xeta is in active conversations with Nortel regarding its ongoing contractual relationships and current accounts receivable.
In public statements, Nortel has said that it has sufficient cash on hand to fund ongoing operations and that it expects operations to continue without interruption.

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