The company, which was once worth $50bn (£36bn) is now in debt, owing more than $12bn (£8.5bn).
Over-investment in global internet networks and the slowdown in traffic on the world wide web causing a slump in demand for global communications and is believed to have brought Global Crossing to its knees.
Problems at the telecom might be eased after it forged a deal with Asian investors Hutchinson Whampoa and Singapore Technologies Telemedia. Under the arrangement, the company will receive a cash injection of $750m (£532m) which could help it come out of the red.
Andersen has been the company’s auditor since it listed on the US Nasdaq in August 1998. Last year Global Crossing paid Andersen £2.3m in audit services and a further £3m in non-audit services.
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK
Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies
Smith & Williamson has been appointed administrators of charity 4Children