Nortel, one of London 2012’s domestic “tier one” sponsors, filed for bankruptcy protection in Canada and the United States.
The company is to provide technical expertise and equipment sponsorship with BT and is an experienced supplier to the Olympic Games.
Nortel became the first sponsor of the Vancouver 2010 Winter Olympic Games.
If Nortel goes under, LOCOG, the London Organising Committee of the Olympic Games, may have to renegotiate with a rival firm in an unfavourable sponsorship market, reports the Evening Standard.
London 2012 organizers said in a statement “we are aware of the situation and working through it with Nortel”, reports the Associated Press.
Under the sponsorship deal Nortel is to supply secure networks, local wireless networks, call centre and fixed telephone infrastructure to support more than 205 international sporting organizations, 20,000 worldwide media, nine million spectators and more than four billion television viewers of the London Games.
According to the Associated Press, officials are hopeful that Nortel can continue supporting the London Olympics in its existing capacity either by successfully restructuring under Chapter 11 protection or by finding a buyer.
