Nortel chief executive to step down?

Zafirovski could be gone in weeks

Ailing Nortel Networks chief executive Mike Zafirovski is reportedly due step down within weeks, as the breakup of the telecoms equipment maker continues apace.

A Wall Street Journal report over the weekend said that Zafirovski – the man who led the company into bankruptcy earlier this year – planned to step down, citing "people familiar with the matter".

In a separate interview with the Ottowa Citizen, Zafirovski said that he would walk out with his head held high. "Obviously I'm not going to be a CEO of a residual company dealing with patent assets and claims," he added.

Zafirovski joined the company in 2005 with a good track record of changing the fortunes of ailing companies – doing so for Motorola's mobile phone division among others.

However his efforts to turn around Nortel were not enough and in January the firm had to file for bankruptcy.

Since then the most lucrative parts of the business have been put up for sale. Wireless telephone network provider Ericsson recently won the battle to acquire the CDMA and LTE assets of the Toronto-based firm, after it beat Nokia Siemens Networks in an auction at the end of July.

Then just last week US and Canadian courts approved a Nortel request to sell off its enterprise business, after the firm said it had come to a "stalking horse" agreement to sell to Avaya for $475m (£280m).

The next stage will be an 11 September auction of its enterprise business, for which bids are due by 4 September.