UPDATE 1-MatlinPatterson mulls plan to reorganize Nortel

* Says current Nokia Siemens proposal falls short

* Plans more comprehensive, competing alternative (In U.S. dollars unless noted)

TORONTO, July 6 (Reuters) - U.S. private equity firm MatlinPatterson Global Advisors confirmed on Monday that it plans to put forward a comprehensive proposal to reorganize the businesses of bankrupt Canadian telecom equipment maker Nortel Networks (NRTLQ.PK).

MatlinPatterson, a major bondholder and Nortel creditor, said it does not believe that the proposed sale of Nortel's key wireless technology unit to Nokia Siemens Networks [NSN.UL]maximizes value for Nortel stakeholders.

It said it is interested in retaining, for current investors, the inherent value of Nortel rather than merely accepting a "fire sale" of its core asset, followed by the wholesale liquidation of the remaining businesses.

"Under the bankruptcy court-imposed timeline, MatlinPatterson is working to put forward a competing proposal that permits this critical part of Nortel to reorganize and emerge from bankruptcy," the firm said in a statement.

On Sunday, the Financial Times, citing people familiar with the situation, reported that MatlinPatterson was trying to put together a consortium of investors to fund a recapitalization of Toronto-based Nortel.

A rescue bid would require a debt-for-equity swap and would need to be put forward by July 24, the date set by the bankruptcy courts to consider the $650 million "stalking horse" bid by Nokia Siemens for most of Nortel's core and profitable wireless equipment operations.

MatlinPatterson said its objective is to present an alternative that not only exceeds the current Nokia Siemens bid in terms of value, but one that also provides a superior outcome for the company and its stakeholders. (Reporting by Megan Davies; writing by Euan Rocha; editing by Rob Wilson)