Several former Nortel executives are launching a bid to try to save the troubled Canadian network vendor, reports Canwest news service. Former president Robert Ferchat, retired VP David Mann and ex-CMO Ian Craig are reportedly planning to buy the company and keep it intact, under Canadian control. The report notes that the Ferchat group is trying to raise at least US$1 billion from investment bankers to fund the purchase of Nortel through the bankruptcy courts. If this comes to fruition, the report speculates that the new owners would likely remove current CEO Mike Zafirovksi and install a new team of executives.

Nortel’s existing management is considering breaking up the company. Last week the vendor confirmed it is aiming to sell off its majority stake (50 percent + 1 share) in its South Korean joint venture with LG Electronics. After filing for bankruptcy protection in January, Nortel said it hoped to emerge from bankruptcy protection before mid-year as “a leaner and more competitive company.” However, under bankruptcy law Nortel must seek the most value for its creditors, which could mean breaking the company apart if suitable buyers are found. Nokia Siemens Networks and Avaya have been linked to potential purchases of its mobile and enterprise assets, respectively.