Global Crossing Sells Fiber Optic Network

MADISON, N.J., August 9 -- Global Crossing today announced that it has signed a definitive agreement under which Hutchison Telecommunications Ltd., a wholly owned subsidiary of Hutchison Whampoa Ltd., and Singapore Technologies Telemedia Pte. Ltd. will invest a total of $250 million for a 61.5 percent majority interest in a newly constituted Global Crossing on its emergence from bankruptcy. Global Crossing said its creditor groups support the agreement.
The agreement was approved today in a hearing before the Bankruptcy Court
for the Southern District of New York.
Global Crossing is also preparing a Chapter 11 plan of reorganization. Global Crossing expects to file its plan in September and to emerge from bankruptcy in early 2003, subject to satisfying various contractual closing conditions, including regulatory approvals and confirmation of its plan of reorganization by the bankruptcy court.
Under the agreement, Global Crossing will retain its UK national business, its conferencing division, and Global Marine. As a result of the agreement, Global Crossing has cancelled the auction scheduled for August 14.
"This is a textbook model for a successful strategic investment," John Legere, CEO of Global Crossing. "Hutchison Telecommunications and Singapore Technologies Telemedia are highly respected telecom companies with assets and skills that complement Global Crossing’s unmatched global network. With our turnaround well under way, and the support of strong new strategic partners, Global Crossing is poised to become the global leader providing networking services to enterprises and carrier customers in more than 200 of the world’s top cities."