RealTime IT News

Global Crossing Considers Sale of Assets

Selling pieces of the Global Crossing pie might be in the carrier's best interests -- not the company as a whole -- executives announced Tuesday, though they are considering all options in its Chapter 11 bankruptcy proceeding.

John Legere, Global Crossing chief executive officer, said several of its entities, namely Global Marine Systems and its U.K. and conferencing businesses, might reap enough to see the carrier past its current crop of financial problems, negating any possible gains from the sale of the carrier as a whole.

Although, he said, the joint bid by Hutchinson Whampoa Ltd. and Singapore Technologies Telemedia Pte. Ltd., is still an option. Bids for Global Crossing are due to the bankruptcy court by June 20. If there is more than one bidder, the auction will be conducted July 8, with the court announcing the winner July 11.

"The new business plan we have implemented creates significantly greater enterprise value than our constituents may have previously realized," Legere said.

The new strategy is either an attempt to get a higher asking price, or the result of an improving bottom line at the international communications company. Legere said they have met every metric expected after instituting a raft of operational changes including capital and spending cuts, employee reductions and revenue projections applicable to today's business environment.

"We've got a company that is transforming itself rapidly into a lean, viable competitor that sets new standards for cost-effective, high quality operation," he said. "We've got world-class employees, and we've got an unmatched network. These are powerful inducements for the potential investors we're working with."

Until Global Crossing board directors, the Securities & Exchange Commission (SEC) and the U.S. Attorney's Office for Central District of California have validated the carrier's finances, all announced company profits are suspect. Global Crossing has yet to file its 2001 annual report after allegations arose claiming the revenues claimed last year were not exactly legal. Officials deny any accounting improprieties.