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,”
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.