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A former New Jersey congressman is raising concerns that a Beijing-based buyout of bankrupt telecommunications giant Global Crossing could give Chinese military intelligence access to top secret FBI and CIA communications. In a joint takeover bid that could thoroughly compromise U.S. national security, China's Hutchison Whampoa Company and Singapore Telemedia Technologies (STT) have offered $250 million for a 61.5 percent stake in Global Crossing, the South China Morning Post reported Wednesday. Noting that the telecommunications company carries all the confidential data of the Justice Department, the FBI and the CIA, IDT Corp. chief executive and former GOP congressman Jim...

    Law.com U.S. Could Sink Global Crossing Deal Tuesday February 18, 2:01 am ET Otis Bilodeau, Legal Times For most battered companies struggling to climb back from bankruptcy, the biggest challenges are appeasing creditors and selling a judge on a viable plan for recovery. But telecommunications giant Global Crossing Ltd. faces a separate, steeper hurdle: It has to persuade a secretive U.S. regulatory body that the company's reorganization plan isn't a threat to national security. Indeed, Global Crossing's hopes of emerging from Chapter 11 could be dashed by U.S. officials who are questioning whether the company's proposed sale to...

Federal prosecutors have decided not to file criminal charges against Global Crossing, Chairman Gary Winnick or any of its other executives over aggressive accounting practices or alleged document destruction, sources close to the investigation said. The U.S. attorney's office in Los Angeles simply lacked enough evidence, one source said. The decision closes the books on the U.S. attorney's probe into the fiber-optic network builder, which rocketed to prominence under Winnick and filed for bankruptcy in January with $ 12.4 billion in debts. The end of the criminal investigation doesn't halt an inquiry by the Securities and Exchange Commission or ongoing...

ZURICH, Oct 4 (Reuters) - Credit Suisse (CSGZn.VX) insisted on Friday it was adequately capitalised, hoping to quash fears it might need to raise fresh capital which sent its ailing shares down over 15 percent to their lowest in over nine years. "Due to the drop in its share price yesterday and today, Credit Suisse Group wishes to announce that it is not aware of any objective reasons prompting this development," Switzerland's second-largest financial conglomerate said in a brief statement. "The group's present capital resources remain adequate, and as stated before, no capital increase of the group is planned," it...

Friday August 16, 7:46 pm Eastern TimeReuters Company NewsStock fraud sting operation could be tip of icebergBy Toni Clarke NEW YORK, Aug 16 (Reuters) - A two-year federal sting operation led to a mass indictment this week of 58 stockbrokers and corporate executives on charges of stock fraud and money-laundering. It's just the tip of the iceberg, lawyers say. One of the most prominent figures caught in what investigators call the "Bermuda Short" operation was Mark Valentine, the suspended chairman of Canadian brokerage Thomson Kernaghan & Co. Ltd., according to FBI officials. The arrest of Valentine, who was detained in...

Press ReleaseSOURCE: Global CrossingHutchison Telecommunications and Singapore Technologies Telemedia Sign Agreement to Acquire a Majority Interest in Global Crossing - Global Crossing's creditor groups support investment agreement - Agreement approved by bankruptcy court on August 9 - Investment will fund successful emergence of Global Crossing from Chapter 11, expected to occur in early 2003 subject to obtaining regulatory approvals 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...

Sale of Global Crossing Faces Trouble Amid Paucity of Bids Wed Jul 17,11:04 PM ET By: Henny Sender and Dennis Berman, Staff Reporters of The Wall Street Journal NEW YORK -- Texas investor Richard Rainwater, Level 3 Communications Inc. (LVLT), Platinum Equity LLC and Gores Technology Group have submitted bids for parts or all of Global Crossing Ltd. (GX - News) Still, it is a meager showing for the auction, scheduled for July 24 , of the telecommunications company under Chapter 11 bankruptcy protection. This increases the likelihood that Global Crossing will be split into pieces. People familiar with the...

Bankruptcy court documents suggest that Global Crossing altered a deal last year with IMG Worldwide, the sports marketing company, in an action similar to those that have prompted federal investigators to ask whether the company used swapping transactions to inflate sales. Under the $30 million deal with TWI Interactive, a unit of IMG that uses Web sites to market sports events like Wimbledon and personalities like Tiger Woods, Global Crossing and TWI agreed to exchange $15 million over five years. TWI sought the agreement to acquire communications services like Web site management and capacity from Global Crossing, while Global Crossing...

Saturday May 25, 2:16 pm Eastern TimePress ReleaseSOURCE: Global CrossingGlobal Crossing Confirms Hutchison Whampoa and Singapore Technologies Telemedia Unable to Reach Agreement With Creditor Constituencies MADISON, N.J., May 25 /PRNewswire/ -- Global Crossing today confirmed that its major creditor constituencies were unable to reach agreement on definitive documentation with Hutchison Whampoa Ltd. and Singapore Technologies Telemedia Pte. Ltd. for an investment in Global Crossing. This agreement would have resulted in the two companies securing a break-up fee and other bidding protections.John Legere, Global Crossing's chief executive officer stated: "While we are disappointed that an agreement could not be reached at...

OUSTON, May 19 — Enron and Global Crossing used a complex deal brokered by a third company to sidestep accounting rules in a March 2001 transaction that was designed to help Global Crossing disguise a loan and allow each company to book revenue, according to executives and traders involved in the transaction.The people involved said the deal, a swap of fiber optic network capacity and services, was brokered by Reliant Resources, one of the nation's biggest traders of energy contracts, which had expanded into the network-capacity trading market. The transaction helped disguise what was essentially an exchange of long-term...

WASHINGTON – Top Clinton Democrats found themselves in legal hot water Tuesday when Judical Watch filed its promised lawsuit against the telecom giant Global Crossing and some of its Democrat benefactors. After a series of NewsMax.com exposés, a congressional committee held a hearing on Global Crossing in late March, and other House panels are investigating the company, which experienced an Enron-like bankruptcy, leaving shareholders and employees high and dry. The suit names 13 top officers and directors of the company, including chairman and CEO Gary Winnick. The suit was filed on behalf of Global Crossing shareholders who have brought claims...

New York Democrat Andrew Cuomo has called on gubernatorial rival Carl McCall to return a $29,000 contribution from collapsed telecommunications giant Global Crossing. But Cuomo refuses to do the same with New York Sen. Hillary Clinton, even though Global Crossing CEO Gary Winnick has showered more than 30 times that much on the Clinton family. "The New York State pension fund lost $75 million from Global Crossing," Cuomo campaign manager Josh Isay complained to the New York Post this week. "[McCall] should return that money and show that he's not profiting when the state's pensioners are losing money," he...

hile more than 50 companies have expressed confidential interest in acquiring Global Crossing, their identities are no longer secret to one another, courtesy of an e-mail message from Global Crossing's lawyers.The e-mail message was sent to the potential bidders on March 28 by an employee of Weil, Gotshal & Manges, the New York law firm that is serving as Global Crossing's counsel in bankruptcy proceedings.Although the message included only routine information on bidding procedures for Global Crossing, it inadvertently named each of the more than 50 recipients by copying their e-mail addresses at the top of the message.The potential...

Global Crossing Ltd. (GBLXQ) is seeking bankruptcy court approval for an employment agreement with Chief Executive Officer John J. Legere that would cut the executive's salary by 30% during the company's restructuring. A hearing is scheduled for May 1 at 9:45 a.m. EDT before the U.S. Bankruptcy Court in Wilmington, Del. Objections may be filed through April 18, according to court papers obtained recently by Dow Jones Newswires.Four months prior to filing for Chapter 11 protection on Jan. 28, Global Crossing hired Legere as its chief executive. At the time, he was chief executive of Asia Global Crossing Ltd. (AX),...

A bitter battle is raging between John J. Legere, Global Crossing's chief executive, and high-ranking executives at its prized subsidiary, Asia Global Crossing (news/quote). The hostility could make it harder for the companies to work together as Global Crossing struggles to find a buyer or to emerge intact from bankruptcy, people close to the company said over the weekend. The dispute arises from a variety of tensions between Mr. Legere and the Asian unit, where he was chief executive for 21 months before becoming chief of the parent company last October. The issues, according to people close to the company,...

Pentagon seeks scrutiny of big foreign deals By Peter Spiegel in Washington Published: April 5 2002 The US Defense Department wants all large foreign acquisitions of American companies to be approved by a secretive national security committee, a move designed to restrict access to sensitive US technology. According to draft legislation written by the Pentagon and obtained by the Financial Times, all deals with overseas buyers valued at more than $100m would have to gain approval from the Committee on Foreign Investment in the US, an obscure interagency panel chaired by the Treasury Department and charged with ensuring foreign acquisitions...

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...

UNION CORRUPTION UPDATE April 1, 2002 -- Vol. 5, Issue 7 For Influential Leaders & Important Decision Makers: Information on America's most corrupt & aggressive unions AFL-CIO / IRON WORKERS / (BSOIW) / COMMUNICATIONS WORKERS (CWA) Grand Jury Probing Union Bosses' Tainted Stock Offer More than two dozen union presidents were reportedly invited to buy shares in Global Crossing, as the Bermuda-based telecom was first offering its stock to the general public. Now a federal grand jury in Washington, D.C., is probing stock transactions by directors of insurance and investment firm ULLICO (f.k.a. Union Labor Life Ins. Co.), a union-dominated...

Arthur Andersen CEO Joseph Berardino resigns 03/26/2002 Associated Press CHICAGO - Arthur Andersen LLP chief executive Joseph Berardino resigned Tuesday, bowing to mounting pressure as a result of the company's role in the Enron scandal. His announcement came four days after former Federal Reserve chairman Paul Volcker urged top management to step aside so he can install and head an independent board in a last-ditch plan to save the company. The key element of Volcker's plan is the dismissal of a federal indictment against Andersen alleging obstruction of justice in destroying Enron-related documents. The Justice Department has not said...