Posted on 04/03/2002 12:02:57 AM PST by kattracks
LOS ANGELES, Apr 03, 2002 (AP Online via COMTEX) -- Global Crossing notified the Securities and Exchange Commission on Tuesday that it will delay filing its 10-K financial report.
The company said Arthur Andersen, the firm's troubled public accountants, won't be able to deliver an audit of its financial statements for the year that ended Dec. 31, 2001, because of an ongoing investigation.
A special committee of Arthur Andersen's board of directors is investigating allegations made by a former Global Crossing employee about questionable accounting and financial reporting practices, the filing said. Due to the Arthur Andersen investigation, the company's ongoing bankruptcy process and continuing governmental investigations, Global Crossing officials said the company has not finished disclosures needed in the Form 10-K.
The Form 10-K will be filed after Global Crossing completes its financial disclosures and the audit report from Arthur Andersen is received.
The Securities and Exchange Commission and the Justice Department are investigating the collapse of Global Crossing, which on Jan. 28 listed debts of $12.4 billion in filing for Chapter 11 bankruptcy reorganization.
Global Crossing Ltd., which is formally based in Bermuda, began operation in 1997 and spent $15 billion building the world's most extensive fiber-optic network. The company cut 9,000 jobs and closed 71 offices with last year's economic slowdown.
Troubled auditor Arthur Andersen also was used by collapsed energy firm Enron Corp. and has been struggling to keep its corporate life. Chicago-based Andersen has lost more than 100 public audit clients so far this year since the financial scandal involving Enron erupted.
Federal lawmakers are holding hearings into Andersen's auditing practices in the wake of the Enron bankruptcy.
Copyright 2002 Associated Press, All rights reserved
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