Press release snafu burned $2 million per day of Nortel creditor cash

$30 million of Nortel creditor value incinerates in only 5 days.

Earlier this week All About Nortel blogger - Mark Evans revealed a press release snafu that appears to have burned $2 million per day of Nortel creditor cash ($6 million per day of "value burned" when factoring in shares to be issued by Ciena to Nortel creditors). How so you may ask? Well, Evans presented evidence of a Ciena press release issued on Friday, October 2 (but quickly withdrawn). Ciena's October 2, 2009 Press Release That Was Withdrawn: According Evan's blog story:

"Here’s the press release that Ciena apparently released last Friday to discuss its purchase of most of Nortel’s optical and Ethernet assets. The press release was quickly pulled, and replaced with another one that Ciena was in discussions with Nortel."

Fast-forward 5 days to Wednesday, October 7: Ciena released a new press release that shaved $10 million in Nortel creditor cash ($30 million of "value burned" when factoring in shares to be issued by Ciena to Nortel creditors). Ciena's New October 7, 2009 Press Release:

Related stories: Ciena was prepared to pay millions more for Nortel's Metro Ethernet business Ciena to buy Nortel unit for $521 million

So what do you think is the moral of this story?

BradReese.Com Cisco Refurbished - Services that protect, maintain and optimize Cisco hardware Contact: Brad Reese | Twitter:

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