Mar, 2002 : Court Approves Global Crossing Acquisition Framework
📅 - A US bankruptcy court gave Hutchison Whampoa and Singapore Technologies Telemedia, two companies interested in acquiring bankrupt firm Global Crossing, until May 21 to turn their letter of intent to purchase the company's assets in to a definitive acquisition agreement, The New York Times reported today.
According to the paper, the deadline was part of a deal reached over the weekend between creditors and the two companies regarding guidelines for reaching a formal agreement to buy the company. It is expected to reduce the chance of a liquidation of Global Crossing's assets, a major concern of the company's employees and creditors.
"We are pleased to have received Court approval on a buyer protection motion that was supported by Global Crossing and its creditors," the two companies said in a joint release.
"While this is the first step in the process, it provides the necessary framework to work towards a definitive agreement with Global Crossing that provides value for its creditors, customers and employees. It is our goal to work with the company's management and creditors to facilitate a reorganization of the business as quickly as possible in order to ensure continued service to Global Crossing's customers."
Also yesterday, Fiber Optek Interconnect Corp. said it would proceed with a complete study of Global Crossing's financial prospects and position. The company, which develops and installs fiber optic telecommunications networks, said two weeks ago that it was considering a bid for Global Crossing. "Our attorneys, accountants and public relations people are assisting in our examination," said Michael Pascazi, president of Fiber Optek.
Global Crossing filed for bankruptcy protection January 28th. Analysts say the Bermuda-based firm couldn't handle the debt load that emerged from the construction of its global network, which reaches more than 200 major cities in 27 countries. The company is currently under investigation by the FBI and SEC.
According to the paper, the deadline was part of a deal reached over the weekend between creditors and the two companies regarding guidelines for reaching a formal agreement to buy the company. It is expected to reduce the chance of a liquidation of Global Crossing's assets, a major concern of the company's employees and creditors.
"We are pleased to have received Court approval on a buyer protection motion that was supported by Global Crossing and its creditors," the two companies said in a joint release.
"While this is the first step in the process, it provides the necessary framework to work towards a definitive agreement with Global Crossing that provides value for its creditors, customers and employees. It is our goal to work with the company's management and creditors to facilitate a reorganization of the business as quickly as possible in order to ensure continued service to Global Crossing's customers."
Also yesterday, Fiber Optek Interconnect Corp. said it would proceed with a complete study of Global Crossing's financial prospects and position. The company, which develops and installs fiber optic telecommunications networks, said two weeks ago that it was considering a bid for Global Crossing. "Our attorneys, accountants and public relations people are assisting in our examination," said Michael Pascazi, president of Fiber Optek.
Global Crossing filed for bankruptcy protection January 28th. Analysts say the Bermuda-based firm couldn't handle the debt load that emerged from the construction of its global network, which reaches more than 200 major cities in 27 countries. The company is currently under investigation by the FBI and SEC.
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URL source: http://www.thewhir.com/marketwatch/gc032702.cfm
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