Bankrupt Global Crossing still growing

In addition, Global Crossing said it still has more than 60 parties interested in buying the company.

Global Crossing has been dogged with misfortune since filing for bankruptcy in January. Since then it has seen inquiries launched into its accounting practices by both the Securities and Exchange Commission and the FBI. It has also suffered the ignominy of seeing the confidential names of companies that had expressed an interest in buying it mistakenly shared among all the potential suitors.

According to the company, while its fate remains in the balance, it is still attracting new customers to the services it offers over its fiber-optic network which connects more than 200 cities around the world. Global Crossing said it signed about 475 new service agreements during the first quarter although that included renewals as well as new business.

On Wednesday the company said it expects to report first-quarter revenue from continuing operations of about $788m down from an estimated $804m in the fourth quarter. Results for the year-ago quarter were not available due to the ongoing investigations.

Global Crossing already has a tentative deal to sell its assets to Asia’s Hutchison Whampoa and Singapore Technologies Telemedia for $750m in cash, a figure some analysts dismiss as far too low. The two companies have until May 21 to revise their offer or submit a higher bid. Other rival bids have to be in by 20 June. An auction is set to take place on 8 July, with the results expected to be confirmed on 11 July.

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