Global Crossing's Use of Swaps To Boost Revenue Wasn't Unusual

WSJ ^ | 2/13/02 | DENNIS K. BERMAN and DEBORAH SOLOMON

[machman]

As Global Crossing Ltd. was putting the finishing touches on its 100,000-mile fiber-optic network in the spring of 2001, it entered into a transaction that struck some employees as odd.

A small Orlando company called EPIK Communications Inc. paid $40 million for the right to divert some of its telephone and data traffic through Global's prized Latin American fiber routes. But exactly offsetting that payment, Global spent $40 million for unspecified future use of EPIK's facilities, which include a 1,850-mile fiber network linking Atlanta and Miami. Nearly a year later, Global's engineers still haven't found any use for the facilities, says one current Global official. "We traded their worthless asset for our valuable asset," he says.

[machman]

Hmmm.

[machman]

The company is formally based offshore in Bermuda, but Mr. Winnick works out of Beverly Hills, in an office said to resemble the Oval Office.

Maybe this is the job they had lined up for the sinkmaster so he could build on his "legacy".

[Bayou City]

A Global bump!

[aristeides]

Sounds as if there may be a few more shoes falling.

[machman]

Yup, sure sounds more like a Ponzi scheme to me than Enron does.

[Ernest_at_the_Beach]

Good information in this article!

Needs a bump!

GlobalCrossing :

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[Ernest_at_the_Beach]

New article today regarding these swaps.

Probes going deeper into Enron swaps : Questions on accounting of swap deals