BusinessBusiness RecoveryBankrupt Global Crossing still growing

Bankrupt Global Crossing still growing

Despite its bankruptcy filing and other recent concerns over the company, Global Crossing, the bankrupt worldwide network operator, is still signing up customers, according to the company.

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.

Related Articles

Investment firm acquires Avon Steel Company Limited

Business Recovery Investment firm acquires Avon Steel Company Limited

3d Emma Smith, Managing Editor
Manchester law firm enters into administration

Business Recovery Manchester law firm enters into administration

3d Emma Smith, Managing Editor
KPMG appoints new global head of insolvency

Business Recovery KPMG appoints new global head of insolvency

3w Emma Smith, Managing Editor
EY hired by Carillion to review finances

Accounting Firms EY hired by Carillion to review finances

5m Alia Shoaib, Reporter
Using insolvency as a debt recovery tool

Business Recovery Using insolvency as a debt recovery tool

6m Emma Smith, Managing Editor
UK government should support mid-sized businesses to create a ‘new economy’ post-Brexit, says BDO report

Business Recovery UK government should support mid-sized businesses to create a ‘new economy’ post-Brexit, says BDO report

8m Alia Shoaib, Reporter
Over 800 jobs saved as Endless LLP acquires Jones Bootmaker

Business Recovery Over 800 jobs saved as Endless LLP acquires Jones Bootmaker

9m Emma Smith, Managing Editor
FRP Advisory expands operation with new office, partner appointments

Accounting Firms FRP Advisory expands operation with new office, partner appointments

10m Emma Smith, Managing Editor