April 28, 2004 |
Fiber-optic network operator Global Crossing Ltd., which exited bankruptcy protection in December, said it would restate 2003 results after underestimating some liabilities. Its shares tumbled 27%. The restatement, which is tied to money Global Crossing may owe other carriers to use their networks, is the latest misstep for the company, which already is under investigation by regulators in a separate accounting matter.
April 6, 2004 |
Gary Winnick, the former chairman of Global Crossing Ltd., must face a lawsuit accusing him of defaming a company finance executive who complained about the fiber-optic network operator's accounting, a judge ruled. U.S. District Judge Gerard Lynch in Manhattan refused to dismiss a claim that Winnick defamed Roy Olofson, former vice president of finance. Olofson complained in 2001 that the company had improperly accounted for phone-service swaps. He was later fired.
March 23, 2004 |
Mexican billionaire Carlos Slim and his family have accumulated 9.1% of Global Crossing Ltd.'s common stock, the U.S. fiber optic network operator said Monday. Reasons behind the purchase were not immediately clear. Slim, Latin America's richest man who has acquired a slew of telecommunications assets throughout the region, is known for his ability to turn battered companies around. He could not be reached for comment.
March 20, 2004 |
Gary Winnick and other former executives and directors of Global Crossing Ltd. agreed Friday to pay $324 million to settle lawsuits filed by investors and former employees who lost billions when the telecommunications firm fell into bankruptcy. Winnick will provide $55 million for the settlement himself. The Beverly Hills billionaire, who founded Global Crossing in 1997, briefly became the richest person in Los Angeles when his company stock boosted his net worth to $6 billion.
March 11, 2004 |
Global Crossing Ltd. posted a fourth-quarter profit of about $25-billion Wednesday -- the largest in corporate history -- but the stock collapsed as not a penny of that came from its actual business. The benefit came from gains realized as the high-speed communications carrier exited Chapter 11 bankruptcy protection, masking an operating loss from continuing operations.
January 27, 2004 |
Gary Winnick and other former executives of Global Crossing should be responsible for any damages that Goldman Sachs Group Inc., Citigroup Inc. and Merrill Lynch & Co. may be ordered to pay the telecommunications company's shareholders, the banks said in a lawsuit.
December 23, 2003
COURTS J.P. Morgan Chase & Co., Goldman Sachs Group Inc. and five other banks sued by shareholders of Global Crossing Ltd., owner of a worldwide fiber optic cable network, must defend themselves against a stock fraud suit, a judge ruled. U.S. District Judge Gerard E. Lynch refused the banks' request to dismiss all but four claims against them.
December 9, 2003 |
Global Crossing Ltd., whose bankruptcy filing two years ago cost investors $40 billion, plans to emerge from Chapter 11 protection as early as this week, people familiar with the matter said. Singapore Technologies Telemedia, which is controlled by Singapore's government, will own a 61.5% stake in the company after paying $250 million. Creditors will own the rest.
October 12, 2003 |
Global Crossing Ltd., the telecommunications firm that symbolized the industry's rise, excess and ultimate collapse, may soon emerge as a battered survivor -- a feat few thought possible when the company sought bankruptcy protection nearly two years ago. The company could wrap up its Chapter 11 reorganization as early as this week, with one man being hailed as the tough-minded executive who made it possible: Chief Executive John J. Legere.