Asia Global Crossing Delays Payment

Still hunting for buyers, Asia Global Crossing is delaying interest payment
on $408 million of senior notes due in 2010, officials announced Monday.

Obviously, recent
reports
of a joint buyout by four investors aren’t proceeding as
smoothly as expected, with the list of potential suitors shrinking by the week.

Officials at the former Global Crossing subsidiary say they have $351
million in their coffers, enough to pay the interest due on the bonds in 30
days and sufficient to keep operations in place.

Last November, the Asian “carrier’s carrier” broke off
talks
with Global Crossing, 58.9 percent majority owners and current recipient
of a Securities and Exchange Commission (SEC) probe into its financial
dealings and subsequent bankruptcy.

One of the only deals remaining on the table is a buyout offer by
Hutchinson Wampoa Ltd, which offered $750 million for Asia Global Crossing,
contingent on a successful restructuring plan.

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