The troubled Canadian telecommunication company Nortel is on the course of selling of its 50 percent stake in LG-Nortel joint venture, formed with the South Korean electronic company LG, reports FT.

According to the report, Nortel, which had filed for bankruptcy court protection in mid-January after credit crunch, undertook the move in a desperate attempt to raise cash. The telco has reportedly chartered Goldman Sachs to look out for a buyer for its stake.

However, Nortel said it will continue to work closely with its joint venture partner LG to ensure the future success of LG-Nortel.

The company said it has had significant growth since the formation of the JV, a market leader in Korea and select International markets.

LG-Nortel was formed in 2005 and had revenues last year of around $1 billion.

The sell off may draw the interest of foreign private equity groups and overseas strategic players who are looking to foray the lucrative shores of South Korea.

But, the sale price is believed to be subject to the intent of LG Electronics and whether it planned to acquire 100 per cent of the company, remain as a minority partner or take the opportunity to exit.

The report said the sale will value the business unit about $1 billion.

The cash gathered from the sale will give a part of the much-needed funding to Nortel.