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Posted on 08/09/2002 8:46:14 AM PDT by flamefront
MADISON, N.J., Aug. 9 /PRNewswire/ -- Global Crossing today announced that it has signed a definitive agreement under which Hutchison Telecommunications Limited (Hutchison), a wholly owned subsidiary of Hutchison Whampoa Limited, and Singapore Technologies Telemedia Pte. Ltd. (ST Telemedia) will invest a total of $250 million for a 61.5 percent majority interest in a newly constituted Global Crossing on its emergence from bankruptcy. Global Crossing's creditor groups support the agreement.
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The agreement was approved today in a hearing before the Bankruptcy Court for the Southern District of New York.
Global Crossing is also preparing a Chapter 11 plan of reorganization. Global Crossing expects to file its plan in September and to emerge from bankruptcy in early 2003, subject to satisfying various contractual closing conditions, including regulatory approvals and confirmation of its plan of reorganization by the bankruptcy court.
The terms of the Hutchison and ST Telemedia agreement provide that Global Crossing's banks and creditors will receive 38.5 percent of the common equity in the newly constituted Global Crossing, $300 million in cash and $200 million of new debt in the form of senior notes. Existing common equity and preferred shareholders of Global Crossing will not participate in the new capital structure.
Under the agreement, Global Crossing will retain its UK national business, its conferencing division, and Global Marine -- three businesses which it had previously considered selling in order to maximize its cash position. Customers of these businesses, as well as Global Crossing's other customers, can expect service to continue without disruption.
The agreement with Hutchison and ST Telemedia follows several months of discussions with a large number of bidders. After reviewing and negotiating all the bids submitted, Global Crossing and its creditors entered into separate negotiations with Hutchison and ST Telemedia. These negotiations resulted in the agreement announced today. As a result of the agreement, Global Crossing has cancelled the auction scheduled for August 14, 2002.
"This is a textbook model for a successful strategic investment," said Mr. John Legere, CEO of Global Crossing. "Hutchison Telecommunications and Singapore Technologies Telemedia are highly respected telecom companies with assets and skills that complement Global Crossing's unmatched global network. With our turnaround well under way, and the support of strong new strategic partners, Global Crossing is poised to become the global leader providing networking services to enterprises and carrier customers in more than 200 of the world's top cities."
Mr. Canning Fok, Group Managing Director of Hutchison Whampoa, said, "We have confidence in the Global Crossing management team and look forward to working with them. Global Crossing presents an attractive business prospect for Hutchison and our investment in the company, which owns substantial broadband network capacity, is in line with our vision to be a leading global telecommunications player."
"Customers will be the real winners in this agreement," said Mr. Lee Theng Kiat, President and CEO of ST Telemedia. "Our three companies will be able to provide continuity on Global Crossing's international networks and expanded service offerings to benefit all our customers. As the telecom market stabilizes, there will be significant opportunities for the new Global Crossing, its creditors and employees. This investment will accelerate ST Telemedia's goal to become a significant global data and IP-centric communications group."
The Blackstone Group, L.P. and Weil, Gotshal & Manges LLP provided advice and counsel to Global Crossing regarding the agreement announced today.
ABOUT GLOBAL CROSSING
Global Crossing provides telecommunications solutions over the world's first integrated global IP-based network, which reaches 27 countries and more than 200 major cities around the globe. Global Crossing serves many of the world's largest corporations, providing a full range of managed data and voice products and services. Global Crossing operates throughout the Americas and Europe, and provides services in Asia through its subsidiary, Asia Global Crossing.
On January 28, 2002, Global Crossing and certain of its affiliates (excluding Asia Global Crossing and its subsidiaries) commenced Chapter 11 cases in the United States Bankruptcy Court for the Southern District of New York and coordinated proceedings in the Supreme Court of Bermuda. On the same date, the Bermuda Court granted an order appointing joint provisional liquidators with the power to oversee the continuation and reorganization of the Bermuda-incorporated companies' businesses under the control of their boards of directors and under the supervision of the U.S. Bankruptcy Court and the Supreme Court of Bermuda. On April 23, 2002, Global Crossing commenced a Chapter 11 case in the United States Bankruptcy Court for the Southern District of New York for its affiliate, GT UK, Ltd. On August 4, 2002, Global Crossing commenced a Chapter 11 case in the United States Bankruptcy Court for the Southern District of New York for its affiliate, SAC Peru Ltd. Global Crossing does not expect that any plan of reorganization, if and when approved by the Bankruptcy Court, would include a capital structure in which existing common or preferred equity would retain any value.
Please visit www.globalcrossing.com or www.asiaglobalcrossing.com for more information about Global Crossing and Asia Global Crossing.
CONTACT GLOBAL CROSSING:
Press Contacts Becky Yeamans + 1 973-410-5857 Rebecca.Yeamans@globalcrossing.com
Tisha Kresler + 1 973-410-8666 Tisha.Kresler@globalcrossing.com
Kevin Burgoyne Latin America + 1 305-808-5925 Kevin.Burgoyne@globalcrossing.com
Mish Desmidt Europe + 44 118-908-6265 + 44 7771-66-84-38 Mobile Mish.Desmidt@globalcrossing.com
Analysts/Investors Contact Ken Simril + 1 310-385-3838 investors@globalcrossing.com
I'm sure Dog appreciates your advice, though I think we'll form our own opinion on the subject.
How's the weather in Bejing?
I've been screaming for years that they are an incredible security risk, but the globalist and free trade types just shrug it off. Has all our 'free trade' with China made them more open?. The only thing our trade has done is to feed their war machine.
Someday in the midst of a shooting match, our infrastructure will simply be shut down - banks, phones, grid systems, servers, logistics - down. It will take critical days or even weeks to recover. They'll find some of the bugs and backdoors built into the software, but it will be way too late.
Now we are selling off the physical infrastructure to boot. In light of the looming war in the middle east and the exposure it will bring to our armed forces, we had better wake up NOW, or lose it all!
It could be the other way around.
I found that Global Crossing runs the DoD DREN computer network (http://www.washingtontechnology.com/news/16_22/cover/17857-1.html).
It is difficult for me to tell what other DoD nets run on GC fiber however, any number greater than one is too many.
jriemer
You can say that again and IMHO, that's putting it mildly.....
The General Accounting Office yesterday threw out the final protest of the 10-year, $450 million Defense Research and Engineering Network contract.
The Defense Information Systems Agency can now proceed with the contract, which it awarded in April to WorldCom Inc., to build a research network for Defense Department and other researchers.
The protest, from Global Crossing Ltd. of Bermuda, was one of three that had been filed with GAO. AT&T Corp. and Sprint Corp. withdrew their protests late last month.
Dan Gordon, associate general counsel for GAO, said GAO sided with DISA’s determination that Global Crossing was a “nonresponsible” contender for the contract. The vendor did not have the financial soundness to compete for the project, DISA officials had argued.
“We found the agency’s determination reasonable,” Gordon said.
Global Crossing had originally won the DREN contract but lost it last summer following an earlier round of protests. During the second competition, DISA chose WorldCom and said it offered the best value. “GAO has notified DISA of its decision to deny Global Crossing’s protest. We are pleased that GAO has upheld DISA’s decision to award the DREN contract to WorldCom,” DISA spokeswoman Betsy Flood said.
A comment from Global Crossing was not immediately available.
Although I don't know what they are going to do now that Worldcom is going down as well...
Have you heard the Hutchinson is the same company that now controls both ports in the Panama Canal??
Hutchinson is a front company wholly owned by the Peoples Liberation Army(Chinese)...
Now thanks for the advice....but I can make up my own mind...
Hutchison Whampoa:
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Now I'm convinced that that fresh northerly gust blew in over the Great Wall.
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