Hutchison Telecommunications and Singapore Technologies Telemedia to acquire majority interest in Global Crossing

Aug. 9, 2002
August 9, 2002--Global Crossing has signed a definitive agreement under which Hutchison Telecommunications Ltd. and Singapore Technologies Telemedia Pte. Ltd. will invest a total of $250 million for a 61.5 % majority interest in a newly constituted Global Crossing on its emergence from bankruptcy.

Global Crossing today announced that it has signed a definitive agreement under which Hutchison Telecommunications Ltd, a wholly owned subsidiary of Hutchison Whampoa Ltd, and Singapore Technologies Telemedia Pte. Ltd. will invest a total of $250 million for a 61.5 % majority interest in a newly constituted Global Crossing on its emergence from bankruptcy. Global Crossing's creditor groups support the agreement.

The agreement was approved today in a hearing before the Bankruptcy Court for the Southern District of New York.

Global Crossing is also preparing a Chapter 11 plan of reorganization. The carrier expects to file its plan in September and to emerge from bankruptcy in early 2003, subject to satisfying various contractual closing conditions, including regulatory approvals and confirmation of its plan of reorganization by the bankruptcy court.

The terms of the Hutchison and ST Telemedia agreement provide that Global Crossing's banks and creditors will receive 38.5 % of the common equity in the newly constituted Global Crossing, $300 million in cash and $200 million of new debt in the form of senior notes. Existing common equity and preferred shareholders of Global Crossing will not participate in the new capital structure.

Per the agreement, Global Crossing will retain its UK national business, its conferencing division, and Global Marine--three businesses that it had previously considered selling in order to maximize its cash position. Customers of these businesses, as well as Global Crossing's other customers, can expect service to continue without disruption.

The agreement with Hutchison and ST Telemedia follows several months of discussions with a large number of bidders. After reviewing and negotiating all the bids submitted, Global Crossing and its creditors entered into separate negotiations with Hutchison and ST Telemedia. These negotiations resulted in the agreement announced today. As a result of the agreement, Global Crossing has cancelled the auction scheduled for August 14, 2002.

The Blackstone Group, L.P. and Weil, Gotshal & Manges LLP provided advice and counsel to Global Crossing regarding the agreement announced today.

For more information about Global Crossing, visit the carrier's Web site at www.globalcrossing.com.

Sponsored Recommendations

How AI is driving new thinking in the optical industry

Sept. 30, 2024
Join us for an interactive roundtable webinar highlighting the results of an Endeavor Business Media survey to identify how optical technologies can support AI workflows by balancing...

Advances in Fiber & Cable

Oct. 3, 2024
November 7, 2024 1:00 PM ET / 12:00 PM CT / 10:00 AM PT / 6:00 PM GMT Duration: 1 hour Already registered? Click here to log in. A certificate of attendance...

Advancing Data Center Interconnection

July 25, 2024
Data Center Interconnect (DCI) solutions provide physical or virtual network connections between remote data center locations. Connecting geographically dispersed data centers...

The AI and ML Opportunity

Sept. 30, 2024
Join our AI and ML Opportunity webinar to explore how cutting-edge network infrastructure and innovative technologies can meet the soaring demands of AI memory and bandwidth, ...