RESTON, Va.-XO Communications Inc. has launched an “any and all” tender offer for Global Crossing Ltd.’s $2.25 billion debt in its third move to purchase the bankrupt company.
Under this offer, XO will pay $220 per $1,000 of bank debt, or $495 million in aggregate, to purchase Global Crossing’s debt. XO previously offered to pay $210 per $1,000 of bank debt and prior to that proposed buying all Global Crossing assets for $700 million.
“We have continued to increase our purchase offer, which is highly unusual in light of the fact that the debtor has refused to exercise its fiduciary duty to negotiate a higher and better offer for the estate,” said Brian Oliver, XO’s executive vice president of strategy and corporate development.
Meanwhile, Global Crossing will appear this week in U.S. Bankruptcy Court to request a four-month extension on its current agreement to sell 61 percent of the company to Singapore Technologies Telemedia Pte Ltd. for $250 million. Creditors have opposed that sale fearing the deal may not garner regulatory approval because the Singapore government controls STT.
“In light of the timing and uncertainties inherent in the STT transaction, XO’s offer is far superior,” said Oliver.
