Global Crossing gets $100m boost
Big loan, strings attached
Global Crossing, the formerly-bankrupt fibre provider, has received the first slice of a $100m loan from Singapore Technologies Telemedia (STT). The deal was delayed while Global Crossing sorted out yet more accounting problems.
The loan was looking doubtful because in April Global Crossing found yet more problems with its accounts, this time for the years 2003 and 2002. Provided it continues to meet conditions, Global Crossing will get another $40m on 1 August and a final payment of $20m on 1 October.
Under the terms of the loan agreement STT should have received a report from Deloitte and Touche regarding cost of access before paying the first tranche - that report must now be ready before the next payment date of 1 August.
Global Crossing was one of the biggest casualties of the internet/telco bubble which saw its shares divebomb from $64 a share to just $.02. It filed for bankrupcy protection or Chapter 11 in January 2002 just days before the FBI and SEC made public a fraud investigation. ®
Global Crossing press release.