BusinessBusiness RecoveryEx-Global Crossing chief pledges $25m

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.

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