The chief executive of Nortel Networks Corp. says he was so sure last year that the fallen technology giant was on track to recover its status that he invested heavily in its stock.
Nortel CEO Mike Zafirovski told a parliamentary committee in Ottawa this morning that several of the company's directors invested their personal money in Nortel stock last year, including himself.
Mr. Zafirovski said his family invested about $500,000 in the company's stock, including some money for his three sons' college tuitions, because he was certain Nortel was on the rebound.
Then the "world turned upside down" and Nortel "hit a wall" with the global financial crisis last fall that resulted in the company seeking bankruptcy protection in January.
Nortel's shares are currently worth less than 20 cents each; a year ago they were worth $10 apiece.
Mr. Zafirovski was testifying before the Commons finance committee, which was to hear complaints about Nortel's treatment of former employees after the company got court protection from creditors.
More to come.