The largest telephone equipment maker based in Toronto has just filed for Chapter 11 bankruptcy today. The strategic move comes just in time as a $107 million interest payment was due. One of the biggest outstanding Nortel loans is originated by the Bank of New York Mellon and is valued at just under $4 billion. Nortel reported a Q3 loss of $3.4 billion in Nov, and also announced 1,300 job cuts. The Nortel stock is down more than 60% on the TSE down to $0.14.