Tech in Trouble: Nortel Networks; Midway Games; eToys

FierceWireless reports: "Nortel Networks, despite having $2.6 billion in cash, is contemplating bankruptcy because of uncertainty about some of its long-term financial problems as well the future market for its voice-only wireless equipment, which has seen a steep drop in demand recently."

According to Gamasutra, Midway Games, the maker of Mortal Kombat, is facing a potential chapter 11 bankruptcy filing and NYSE delisting.

Word on The Street is that the parent of eToys.com, Parent Company (clever, huh?) filed a Chapter 11 petition in Delaware two days ago. The original Etoys filed for Chapter 11 in 2001, and was sold to KB Toys, which recently filed its own Chapter 11 petition.

Have a good New Year everyone.