Nokia Siemens Network will spend $ 1.6 billion in restructuring

The joint venture Nokia Siemens Network is going through hard times. In fact, to go to good governance in need of restructuring and reorganization, and this requires the sum of which currently does not have the NSN. To implement measures to rescue the business of producing telecommunication equipment, the company managed to make a loan in the European and U.S. banks totaling $ 1.6 billion. Earlier, the company has found $ 1.95 billion in debt of $ 2.6 billion, which was formed in connection with large-scale program to reduce and receiving $ 1.3 billion from the parent company after an unsuccessful attempt to sell the business. NSN is the world's second largest manufacturing company broadcast and mobile telecommunications equipment. But the company from its inception in 2007, suffers from the availability of debt and a highly competitive market. Unsuccessful old joint activities was also due to the global economic downturn, which led to the fact that instead of clearing off the company to increase their volume. As a result of last year it was announced on the reduction of 17,000 jobs and announced the launch of modems and other commercial equipment users. We also learned that receive funds from parent companies is no longer possible, so further restructuring costs needed foreign loans. Among borrowers appear JPMorgan, Citibank, Bank of America and at least two European banks.