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Global May Be Solvent by Next Week

October 10, 2003|From Reuters

Telecommunications company Global Crossing Ltd. could emerge from bankruptcy protection as early as next week after regulators cleared the $250-million sale of a majority stake to Singapore Technologies Telemedia, people familiar with the deal said Thursday.

STT's bid to buy a 61.5% stake in Global Crossing must close by Oct. 14, under an earlier agreement.

"Both parties are working very hard to meet that deadline. Once it is closed, Global Crossing will emerge from bankruptcy," a source familiar with the transaction said.

The Federal Communications Commission on Wednesday approved the transfer of licenses allowing STT, which is owned by an arm of the Singapore government, to buy Global Crossing after a protracted security review.

"The continued operation of the Global Crossing subsidiaries will benefit competition by preventing discontinuance of service and providing customers choices among providers of telecommunications," the FCC said.

"FCC approval is a major milestone, the last regulatory requirement for our emergence from Chapter 11," said John Legere, Global Crossing chief executive.

Global Crossing filed for bankruptcy protection early in 2002 after amassing $12.4 billion in debt in the midst of sagging demand.

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