The collapse of the largest Internet provider

The Internet bankruptcy American company Global Crossing, a high -speed provider, announced its bankruptcy. It became the fourth largest in the history of the United States after the bankruptcies of Enron, Texaco and Financial Corporation of America.

In business circles, the financial situation of the company was actively discussed for several months, and in the meantime its shares were depreciated.

The Audinator Global Crossing was Andersen, involved in the scandal around the bankruptcy of the American energy giant Enron.

The problems of Global Crossing are partly related to debts accumulated in the process of developing a global optical -optical network connecting more than 200 cities in 27 countries.

The company tried to restructure its debts. On Monday, representatives of Global Crossing said the company's assets amount to $ 22.4 billion, and the debt is 12.4 billion.

The company was created in 1999 as a result of the merger of the Bermuda company, specializing in optical -gloss networks and one of the American telecommunication operators.

At that time, Global Crossing was considered one of the most promising from the new generation of telecommunication companies of the late 90s. The market value of the newly created company rose to $ 75 billion.

However, the general economic decline, which entailed, in particular, the decrease in investment in the field of telecommunications, as well as large debts led to the collapse of the company. In the third quarter of last year, Global Crossing incurred $ 3.4 billion and announced a reduction in 3,200 jobs.

After the bankruptcy announcement of trading in shares of the company, they were suspended. Over the past year, the cost of Global Crossing shares has decreased by about 96%, reaching a record of 51 centers per share.

Control over the bankrupt company has so far been installed by Hutchinson Whampoa Limited from Hong Kong and Singapore Technologies Telemedia PTE. Ltd. From Singapore, which were allocated for the needs of the Global Crossing $ 750 million.

Among the Global Crossing creditors, who will apply for part of this amount, are such large financial institutions as JP Morgan Chase & Co., Citibank and Japanese SoftBank, as well as companies such as Lucent Technologies, Alcatel, Bellsouth, Verizon Communications and the Japanese Trading House Marubeni.

Observers note that the Global Crossing shareholders will remain with nothing, including its founder and chairman of the board of directors Gary Winnick, which, apparently, will not take part in the future fate of the company.

01/29/2002 / Alexey Shulunov