Nortel announced that it will offload its Enterprise Business Division to Avaya for $ 475 million as the Canadian firm struggles to get itself out of the bankruptcy mode.

“We continue to be fully focused on running our operations and continuing to serve our customers while actively engaged in the sale of our businesses. We have determined that the sale of our businesses maximises value while preserving innovation platforms, customer relationships and jobs to the greatest extent possible,” said Nortel President and Chief Executive Officer, Mike Zafirovski.

The International Nortel Networks Users Association, a group of more than 4,000 Nortel customers, said in a separate statement it supports the bid by Avaya.

The move is expected to give Avaya competitive advantage in form of additional market share as well as economies of scale.

Meanwhile, Research in Motion (RIM) popular for its BalckBerry services said that it has been prevented from bidding for Nortel’s Wireless Assets. RIM said that it was told that if it participated in the bid it could not submit offers for other Nortel assets for a one year. RIM further stated that it had offered $ 1.1 billion as its bid offer to Nortel which is significantly higher than the $ 650 million offered by NSN.

“RIM remains extremely interested in acquiring Nortel assets through a Canadian ownership solution that would serve the dual purpose of keeping key wireless technologies in Canada and extending RIM''s leadership in the research, development and distribution of leading edge wireless solutions, but RIM has found itself blocked at every turn," said RIM CEO, Jim Balsillie.