EDC gave "post filing support" of $30 million after the bankruptcy filing in January, he added.

Nortel is trying to sell its business units and has been operating under bankruptcy protection since Jan. 14. After Nokia Siemens Networks presented its bid, Waterloo, Canada-based RIM complained it was effectively shut out of the auction process, and called on the federal government to review the sale. On July 20, RIM stated in a press release "the loss of Canadian ownership of Nortel's CDMA and Long Term Evolution businesses may significantly, adversely affect national interests, with potential national security implications ...."

Ericsson's purchase was approved by courts in the U.S. and Canada but may still subject to a review by Industry Canada because the Investment Canada Act requires a review of all purchases by foreigners of Canadian firms exceeding $312 million. Nortel has claimed the "book value" is actually $149 million.

During testimony before the committee, Richard Lowe, Nortel's president of carrier networks, said a minimum of 2,500 jobs were committed as part of the transaction.

About 800 jobs would be located in Canada, Lowe said. The majority are in Ottawa, Lowe said, adding about 80 per cent are research and development jobs, split between CDMA and Long Term Evolution.