Global Crossing Creditors Insist on Singapore Deal Only

The official committee of unsecured creditors in the Global Crossing Chapter 11 bankruptcy case issued a public statement reaffirming its support for the reorganization plan under which Singapore Technologies Telemedia will acquire a majority stake in the company. The Creditors’ Committee said it remains optimistic that the transaction will be approved on a timely basis by the Committee on Foreign Investment in the United States and other federal regulatory authorities. The creditors also insist that only the Singapore bid could deliver a maximum value for the distressed company. The creditors believe that even to consider bids from XO Communications or IDT Corporation would carry multiple execution and timing risks that would inject substantial delay into Global Crossing’s efforts to emerge from bankruptcy.