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Hutchison Whampoa Ltd. and Singapore Technologies Telemedia to invest $750 million for a joint majority stake in Global Crossing
January 28, 2002
HAMILTON, Bermuda -- Global Crossing (NYSE: GX) today announced that it has signed a letter of intent with Hutchison Whampoa Limited and Singapore Technologies Telemedia Pte. Ltd. for a $750 million cash investment for a joint majority stake in the company’s equity in connection with a restructuring of the company’s balance sheet. In order to begin the restructuring process, Global Crossing and certain of its affiliates commenced Chapter 11 cases in the United States Bankruptcy Court for the Southern District of New York and coordinated proceedings in the Supreme Court of Bermuda. Under the terms of the proposed investment, which is conditional on, among other things, the confirmation of a plan of reorganization by the courts before the end of August 2002, creditors would share in a combination of cash, new debt, and new equity in the restructured company. Existing common equity and preferred shareholders would not participate in the new capital structure. John Legere, Chief Executive Officer of Global Crossing stated, “We believe this new equity investment from parties as strong as Hutchison Whampoa and Singapore Technologies Telemedia validates our confidence in the strong future of our company. This investment, along with the financial and operational restructuring that we’re implementing, will strengthen our balance sheet and enable Global Crossing to build a sustainable business upon its existing unmatched global network. With this restructuring, we believe we can become the global leader providing networking services among the world's top 200 cities to global enterprises and carriers.” Mr. Legere said that business would continue as usual during the restructuring process. Employees will continue to be paid their wages and other benefits without interruption. Worldwide operations will be unaffected by the filing and customers will not experience any changes in their service.Global Crossing Ltd. Hutchison Whampoa Ltd.Singapore Technologies Telemedia Pte. Ltd.
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