Ex-Global Crossing chief pledges $25m
Gary Winnick, the chairman of bankrupt telecoms operator Global Crossing stunned US courts yesterday by offering $25m (£16m) to cover the losses of those that invested in the company's pension scheme.
Link: Global Crossing to emerge from Chapter 11
Although a clear and blatant PR stunt, the congressional committee praised Winnicks stance and dropped its line of questioning. The $25m is unlikely to burn much of a hole in Winnick’s own pocket – he has sold shares in Global Crossing worth $700m over the last few years.
On top of the offer of a donation, Winnick denied that he was involved in any insider trading or fraud. The company remains under investigation from the US Justice Department and the Security & Exchange Commission.
Global Crossing, one of a number of companies to collapse in the global telecom slump, looks set to emerge from bankruptcy.
The company filed its plan to a Manhattan court last month, based around an injection of $250m from Hong Kong-based Hutchison Whampoa and Singapore Technologies Telemedia, in return for a 61.5% share of the business.