Global Crossing emerges from bankruptcy

Dec. 10, 2003 at 8:11 AM
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WASHINGTON, Dec. 10 (UPI) -- International telecommunications company Global Crossing Ltd. has emerged from bankruptcy, but will have to generate $400 million a year to break even.

While in bankruptcy, despite being free of onerous interest payments, Global Crossing continued to bleed -- the last filing with bankruptcy court in June stated a loss of $99 million on revenue of $252 million per quarter.

"We are not generating cash; we are burning cash, but far, far less than before," Global Crossing Chief Executive John J. Legere told the Washington Post in an interview.

He said the company is well positioned to take advantage of the telecommunications industry's shift away from traditional telephone networks toward transmitting calls over the Internet.

The company, nominally based in Bermuda, but operating from New Jersey, was founded in 1997 by Gary Winnick, who built the first independently owned undersea telecommunications network.

While the company's value grew to $50 billion, competitors flooded the market. When Global Crossing filed for bankruptcy in January 2002, it had $12.4 billion in debt.

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