If only Ebone could do the same.... NOTE: this didn't exactly happen over time, LVLT went bust a few months back. All I'm saying is that it could take some time for us too....
Global Crossing Readies New Consortium
By Siobhan Kennedy
NEW YORK (Reuters) - Global Crossing's management team is gearing up this week to assemble a new consortium of investors that can allow the bankrupt telecom firm to operate as an independent company, Chief Executive John Legere said.
In an interview, the official of the troubled international communications network operator said that Global Crossing is looking to raise up to $500 million from outside investors to bring its go-it-alone bankruptcy reorganization plan to life.
This financing plan must be pulled together hastily in order to meet a July 11 court-mandated deadline for takeover bids from rival telecoms groups seeking to wrest control of Global Crossing and its far-flung communications network.
"We would like to bring in $250 million to $500 million worth of equity, of cash, to make sure we have a very comfortable cushion to grow the business," Legere told Reuters in an interview on Friday.
But attracting new financial backers could be complicated by allegations revealed in court documents on Friday of possible document destruction by Global Crossing employees earlier this year, around the time it filed for bankruptcy protection. The company denied any such incidents took place.
Legere did not provide details of who the consortium partners were but the CEO said he had just finished a fund-raising tour -- taking in the United States, Latin America and Europe -- where he had conducted meetings with several telecommunications companies and venture capital funds.
He said a string of those companies were now conducting due diligence on Global Crossing (Other OTC:U color=#0000ffGBLXQ.PK/U - U color=#0000ffNews/U) with a view to becoming part of a consortium that will lead the telecom firm out of bankruptcy.
"The company could get sponsored by one big player, but it's logical that there's room for various people to invest in smaller chunks and that's what we're investigating," he said. "By next week, we start introducing them to each other."
Global Crossing filed for the fourth largest U.S bankruptcy in January, buckling under $12.4 billion in debt, a glut of high-speed network capacity and falling prices for the spare capacity it sells to other telecommunications operators.