May 27 (Bloomberg) -- Nortel Networks Corp., the Canadian company that filed for bankruptcy after losing $5.8 billion last year, said it will seek a buyer for its majority stake in a venture with LG Electronics Inc. in South Korea.

LG-Nortel is profitable and hasn’t filed for creditor protection, Toronto-based Nortel said today in a statement. Nortel Networks Ltd., its principal operating subsidiary, owns 50 percent plus 1 share of the Korean venture, which makes equipment for wireless and fixed-line communications.

Goldman Sachs Group Inc. will manage the sale, which must receive the approval of the Ontario Superior Court of Justice, Nortel said.

Nortel filed for bankruptcy protection in January. The company has struggled with falling sales as phone carriers, such as Sprint Nextel Corp., put off upgrading their networks. Chief Executive Officer Mike Zafirovski said earlier this month that the company was nearing completion of a plan to run its units as separate businesses.

LG Electronics hasn’t made a decision regarding its continued participation in the venture with Nortel, the Korean company said in an e-mailed statement.

To contact the reporter on this story: Rochelle Garner in San Francisco at rgarner4@bloomberg.net.

Last Updated: May 27, 2009 21:40 EDT