Global Crossing out of bankruptcy
Global Crossing and Singapore Technologies Telemedia (ST Telemedia) closed a deal this week that will enable a newly restructured version of Global Crossing to emerge from Chapter 11.
Under the deal, ST Telemedia invested $250 million in Global Crossing, giving it a 61.5 percent stake in the company. The remaining 38.5 percent has been distributed to Global Crossing's former secured and unsecured creditors. Global Crossing's common stock initially will trade in the Over-the-Counter-Market, but the company has applied for quotation on the Nasdaq.
Global Crossing's reorganization plan, which was confirmed by the U.S. Bankruptcy court for the Southern District of New York on Dec. 26, 2002, went into effect on Dec. 9, 2003. ST Telemedia also agreed to purchase $200 million in senior secured notes that were originally distributed to former creditors.
"Global Crossing today emerges with an unmatched asset — an IP-based network reaching more than 500 major commercial centers around the world and serving tens of thousands of customers, including more than 40 percent of the Fortune 500," said Global Crossing CEO John Legere, in a release.