MatlinPatterson Global Advisors, the New York private equity firm, is approaching potential strategic partners as it prepares a rescue plan for Nortel Networks, the struggling Canadian telecommunications equipment maker, according to people close to the discussions.

MatlinPatterson emerged as one of Nortel’s biggest creditors after the Canadian company filed for Chapter 11 bankruptcy protection in mid-January. Last week the firm revealed it was considering a comprehensive restructuring and recapitalisation plan for Nortel after the Candian company accepted a bid from Nokia Siemens Networks, the European joint venture group, for one if its most profitable units.