Global Crossing Breathes Again
The carrier needed the cash to refinance a $125 million bridge loan organized by its 61.5 percent shareholder, Singapore Technologies Telemedia Pte. Ltd. (STT), to pay off debts, and to provide long-term liquidity.
The carrier's stock shot up $1.03, more than 7 percent, to $15.47 on the news, valuing the operator at $340 million.
A spokesman for the carrier said he was restricted by Securities and Exchange Commission (SEC) from commenting further on the news, and couldn't say whether the operator needed any further funds to see it through to profitability.
In its third quarter, Global Crossing recorded a net loss of $102 million. Its revenues were $617 million, down from $648 million in the previous quarter, and from $696 million a year earlier.
In turn, the carrier is cutting 600 staff by next March in an effort to reduce costs.
The operator has had a troubled year, having staved off delisting from Nasdaq as it battled to file financial restatements for 2003 and provide financials for the first half of this year (see Global Crossing Files Results and Global Crossing Granted Extension).
Separately, Global Crossing's ex-CEO Gary Winnick is among four former executives expected to be charged and fined by the SEC for alleged accounting fraud as Global Crossing slid towards bankruptcy with $12.4 billion in debt, according to The Wall Street Journal (see Global Crossing Falls Overboard and Winnick Walks). The carrier emerged from Chapter 11 protection in October 2003 (see Global Crossing Emerges From Chap 11).
The carrier is not due to be charged, nor is it commenting on the case.
— Ray Le Maistre, International News Editor, Light Reading