Apple's original AirPort development partner, Lucent Technologies has denied rumours of bankruptcy that surrounded it yesterday.

"Rumours that Lucent is filing for bankruptcy are baseless and irresponsible," said Lucent's chief financial officer Deborah Hopkins.

Lucent's stock value fell 14.01 per cent during yesterday's trading, closing at $6.75 per share.

Lucent has been suffering from financial troubles, layoffs, and an accounting investigation by the Securities and Exchange Commission. Company representatives continue deny that they are preparing to file for Chapter 11 bankruptcy protection.

The company has recently arranged a $4.5 billion line of credit from investment giants JP Morgan and Salomon Smith Barney.

"They are such a large company, it's hard for me to believe they would file bankruptcy," said Bernard Elliot, a research director at Gartner Group.

"The rumours could only have come from two sources: competitors or inside leaks," Gartner's Elliot said, adding that he believed it was probably spread by competitors.

Hopkins was resolute: "Let me be very clear, our $6.5 billion lines of credit provide the financial resources and flexibility to execute our turnaround plan.

"We are already seeing positive impacts from our comprehensive restructuring program."

Lucent reported a $1.02 billion loss in the first quarter of this year – slicing its workforce by 10,000 as a result.