Global Crossing to File Reorganization Plan
Fiber-optic network builder Global Crossing Ltd. said it would file its reorganization plan today with the U.S. Bankruptcy Court in Manhattan.
The core of the plan is expected to be a $250-million cash infusion from two Asian companies that negotiated with the company’s executives and creditors.
A court hearing on a disclosure statement, which provides details of the plan, is set for Oct. 21. Global Crossing expects a majority of creditors to accept the plan and the court to approve it.
The two Asian companies, Hutchison Whampoa Ltd. in Hong Kong and Singapore Technologies Telemedia Ltd., agreed last month to put $250 million into the company for 61.5% of the stock. Creditors would receive $175 million in senior notes and 6% of the equity, bondholders would get 32.5% of the stock and one class of debt holders would get $25 million worth of notes. Shareholders would get nothing.
Global Crossing’s initial petition in January listed assets of $22.4 billion and debt of $12.4 billion.
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