Global Crossing and its majority shareholder, Singapore Technologies Telemedia (ST Telemedia), reached an agreement to recapitalize Global Crossings current debt holdings and provide additional short-term liquidity to the company. Global Crossing intends to pursue additional secured debt financing in fourth quarter to meet long-term funding requirements.
In addition, Global Crossing announced a business restructuring plan to streamline and better focus its operations to broadly serve enterprise customers with higher margin global, IP and managed services offerings and to de-emphasize lower margin legacy services, designed to accelerate the point at which the company reaches operating cash flow break-even.
Global Crossing also restated its 2003 results. The amount of the adjustment to its 2003 cost of access expenses is $67 million, with an additional approximately $12 million balance sheet reclassification related to cost of access amounts recorded upon the company’s emergence from bankruptcy.
Separately, Global Crossing also announced that it is expanding its conferencing business. The company has increased the number of customer care representatives by 30% to support business growth, invested more than $3 million in conferencing technology, and added new features such as reservationless videoconferencing and synchronized recordings of desktop application sharing with Ready-Access Web Meeting. http://www.globalcrossing.com
