Sep, 2002 : Global Crossing Seeks Approval of Settlement
📅 - Bankrupt telecommunications carrier Global Crossing Ltd. is reportedly planning to seek court approval next week for the settlement of $497 million in claims by seven of the company's major equipment and construction vendors.
Global Crossing's proposed settlement would see the company pay about $113.5 million in installments, and allow the vendors to have general unsecured claims of about $82 million in total.
The agreement would reportedly save the company about $24.5 million on post-petition services otherwise payable to the vendors in 2002.
Global crossing reached agreements with Nortel Networks, Hitachi Telecom, Juniper Networks, Level 3 Communications, Sonus Networks and Alcatel SA in August, but negotiations with Lucent Technologies took almost an additional month.
In exchange for releasing Global Crossing from $123 million in claims, Lucent will receive $15 million within 10 days of the settlement's approval, and $10 million more at confirmation of the plan or March 31, 2003, whichever comes first. Lucent will also have a $20 million unsecured claim against Global crossing.
The settlement hearing was scheduled for Thursday, but was rescheduled for Monday at the request of Global Crossing.
Global Crossing's proposed settlement would see the company pay about $113.5 million in installments, and allow the vendors to have general unsecured claims of about $82 million in total.
The agreement would reportedly save the company about $24.5 million on post-petition services otherwise payable to the vendors in 2002.
Global crossing reached agreements with Nortel Networks, Hitachi Telecom, Juniper Networks, Level 3 Communications, Sonus Networks and Alcatel SA in August, but negotiations with Lucent Technologies took almost an additional month.
In exchange for releasing Global Crossing from $123 million in claims, Lucent will receive $15 million within 10 days of the settlement's approval, and $10 million more at confirmation of the plan or March 31, 2003, whichever comes first. Lucent will also have a $20 million unsecured claim against Global crossing.
The settlement hearing was scheduled for Thursday, but was rescheduled for Monday at the request of Global Crossing.
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