Bankrupt broadband provider Global Crossing, Inc., is suing XO Communications, Inc., which itself is facing a possible bankruptcy filing, after the Reston, Va.-based XO cut off access of its network to Global Crossing. The suit claims XO was retaliating for a Feb. 28 decision by Global Crossing to deny services to XO for nonpayment of a $632,165 delinquent bill.
XO was using the Global Crossing network to provide services to the broadband carrier's customers where the XO had no service of its own. Global Crossing, in turn, used the XO network to provide service in areas where the Global Crossing network did not extend. Global Crossing says it has 120 U.S. customers that use the XO network.
The suit seeks to have a New York bankruptcy judge to order XO to immediately restore the service.
With nearly $12 billion in debt, Global Crossing filed for Chapter 11 bankruptcy on Jan. 28 in the country's fourth largest insolvency case. XO has said it may file for bankruptcy to force its debtholders to accept a restructuring deal that would give Telefonos de Mexico and Forstmann Little 39 percent of the troubled company for $800 million. The deal would leave XO's stockholders with virtually worthless stock.







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