Singapore Technologies Telemedia (ST Telemedia) consummated its acquisition of Global Crossing, enabling the a newly restructured Global Crossing to emerge from Chapter 11 proceedings. ST Telemedia invested $250 million in Global Crossing for a 61.5% equity share of the company. In addition to its $250 million equity investment, ST Telemedia has agreed to purchase $200 million in senior secured notes that originally were to be distributed to former creditors. Under the final, amended plan of reorganization, the $200 million cash injection by ST Telemedia was used by Global Crossing to pay its creditors.
As a result of the bankruptcy process, Global Crossing’s long-term debt and convertible preferred stock was reduced from roughly $11 billion at the end of 2001, including approximately $1 billion of Asia Global Crossing debt, to $200 million of debt post-emergence.
Global Crossing said it is now positioned to become a market leader in global data and IP services. It has an annual revenue base of nearly $3 billion. The company’s operating expenses from continuing operations have been reduced by approximately 63% from a peak annualized spend of approximately $2 billion at the beginning of 2001 to an estimated current annualized level of just over $700 million.
http://www.globalcrossing.com
http://www.sttelemedia.com
