With each passing day the chance that Nortel Networks can rise Phoenix-like from the ashes of bankruptcy shrinks a little further. On July 24, if the courts approve a sale of itsNortel’s CDMA division to Nokia Siemens Networks for $650m, the fate of the telecom equipment maker will be sealed, with a fire sale of the remaining assets to follow.

The only hope for a company that was once Canada’s $250bn stock market champion is a cut-price recapitalisation. MatlinPatterson Global Advisors is reported to be considering a rescue bid for Nortel. The private equity group, a specialist in distressed investments, has gathered up a 10th of Nortel’s outstanding debt and is seeking fellow investors.