Global Crossing to emerge from Chapter 11
Telecommunications group, 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 over the weekend, 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.
Global Crossing, filed for Chapter 11 bankruptcy protection in January after building up a debt mountain of $12.4bn – the fourth biggest bankruptcy filing in US history after WorldCom and Enron.
The company built a fibre-optic network spanning 100,000 miles and more than 200 major cities in 27 countries before falling victim to the telecoms slump.
It is currently under investigation by chief financial watchdog, the Securities and Exchange Commission, and the US Justice Department over allegations of misreported revenues and costs.