House Committee Asks Global Crossing for Financial Records

📅 March 13, 2002 - The House Energy and Commerce Committee(energycommerce.house.gov) has asked Global Crossing Ltd. to turn over a number of financial records and internal documents by March 26.

Hamilton, Bermuda-based Global Crossing (globalcrossing.com), the bankrupthigh-speed data network provider, said Tuesday it intends to fully complywith the request by federal lawmakers.
The company, which filed the fourth-largest Chapter 11 bankruptcy in U.S.history in January, said in a statement, "It is reviewing the request andintends to provide the committee with the documents it needs.
The company is currently being investigated by the Securities and ExchangeCommission for alleged accounting improprieties, along with other similarlytroubled telecommunications firms WorldCom and Qwest.
According to news reports, the committee said Global Crossing may haveparticipated in accounting practices similar to Enron Corp. which filed forChapter 11 bankruptcy protection last Dec., which had the effect ofincreasing Global Crossing's revenue without increasing its actual cashflow.
The House Committee said Tuesday it has requested all records related to thesale of Global Crossing shares or options exercised or sold by GlobalCrossing's directors, officers and employees from 1998 to the present.
In addition, the House Committee is seeking information related to the saleof Global Crossing shares from 1998 to present, as well as any contract orcapacity swap entered by the company as either a buyer or seller from thesame period.
On Friday, Global Crossing announced plans to close 71 offices, cutexecutive salaries and as many as 1,600 jobs as part of a largerrestructuring in attempts to save at least $600 million in costs this year.