Global Crossing

In 2002 Global Crossing filed for chapter 11 bankruptcy protection with liabilities of over 20 billion dollars (USD).

Global Crossing created a private global IP network around the world including many undersea, but the capital and operating expense of the cable systems and general oversupply in the capacity markets meant that the company could not meet their payments. At the height of the dot-com boom, Global Crossing had a market value of $50 billion, assets that have been estimated at $20 billion, and a debt load of $12 billion. The founders, led by Gary Winnick[?], sold hundreds of million of dollars of stock before the company fell apart in accounting scandals which also consumed other telecom players Qwest and WorldCom.

On August 9, 2002, Global Crossing and its creditors agreed to a buyout by the Asian telecom companies Hutchison Whampoa[?] and Singapore Technologies Telemedia[?] for $250 million for 61.5 percent of the company (an implied equity value of $407 million). An earlier bid by the same group for $750 million for 79 percent (equity value of $950 million) was rejected. The company's public shareholders will receive nothing.