Already the court is looking at another offer from Hutchison Whampoa ofHong Kong and Singapore Technologies Telemedia for $750m.
According to the terms of Global Crossing’s bankruptcy rescue proposal,the minimum Gores could offer would be $800m, including a $40m penalty fee for the two Asian companies.
While a Gores Technology spokesman declined to comment, there areindications that momentum has been building against the two Asiancompanies.
Already one of Global Crossing’s creditors, Fleet National Bank hasfiled a motion in federal bankruptcy court trying to stop the deal,alleging the offer is too low and “may be tainted by collusion andself-dealing.”
The New York Times recently reported that two Global Crossing directors,including chairman and founder Gary Winnick, secretly invested $25m in a firm effectively controlled by Singapore Technologies.
Gores, which has acquired more than 34 technology companies over thepast 12 years, is likely to salvage the company’s $12bn worldwidefiber optic network.
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