From the 'still down but not out' files:

Telecom and networking vendor Nortel Networks is still in trouble. Four months after entering into creditor protection in both Canada and the US, Nortel needs more time to restructure and protect itself from creditors.

Nortel has been granted an extension by the courts for its protection until July 30th.

Will it be enough time for Nortel to get its house in order? Well considering how little it has done in its first 90 days of protection, I'm not so sure.

I had expected that Nortel would begin some selloffs of its key assets. To date, the only asset that I've seen them sell is are its Alteon assets. That particular divestiture resulted in an $18 million sale for Nortel. That's just not enough.

I have spoken with their new Enterprise leader John McHugh, who hinted that Nortel is ramping up new platforms so things are happening. It's just that from where I sit not enough things are happening.

Nortel should likely be selling off more than just $18 million worth of its assets. No doubt the restructuring process is a very difficult one and no one should under estimate the immense challenges Nortel faces. It will be interesting to see what the next 90 days wills bring and whether or not we will in fact see another divestiture from Nortel.