Nortel will keep its Long Term Evolution (LTE) patents if Ericsson's bid is successful, though Ericsson would have the right to use the patents for a licensing fee.

As of Friday, no company had publicly bid for the metro Ethernet unit, and Avaya was the only firm vying for the enterprise business, but Riedel said sales of the principal businesses may close either the fourth quarter of 2009 or the first quarter of 2010.

As for the patents, Riedel testified, "no process has been put forward to deal with those," and the goal is to sell the assets first.

"We're reviewing a number of options," he replied to Rota. "We will have to get the monitor, courts and creditors to approve the process." By monitor, he was referring to Ernst & Young, which has been appointed by the courts.

In reply to a question from committee member Brian Masse, a New Democratic Party member of parliament, Riedel said the book value of the assets Ericsson wants to buy is $149 million.