Banks Give GX a Waiver

HAMILTON, Bermuda -- Global Crossing Ltd. (NYSE: GX) announced today that it has reached agreement with a consortium of banks led by J.P. Morgan Chase and Citibank for a waiver of potential violations of certain financial covenants in the company’s credit agreement with the consortium. This waiver resolves concerns that the company would be out of compliance with these covenants at the end of the year 2001. Global Crossing had previously announced that it anticipated the need for such a waiver.The agreement between Global Crossing and the banks, which is effective today, provides for a waiver of the relevant financial covenants through February 13, 2002. The waiver requires Global Crossing to maintain certain cash balances in order to keep the waiver in force. “We expect to continue discussions with our bank lenders about the terms of our bank credit agreement as we pursue discussions with potential equity investors,” said John Legere, chief executive officer of Global Crossing.Global Crossing Ltd.