RESTON, Va.-XO Communications Inc. announced it now owns approximately $790 million of Global Crossing’s $2.214 billion debt after $495 million of Global Crossing senior secured loans were tendered to XO yesterday.
The news follows XO’s fourth proposed restructuring plan for bankrupt Global Crossing, offered late last week as a back-up plan to Global Crossing’s current efforts to emerge from bankruptcy through a purchase agreement with Singapore Technologies Telemedia Pte, which has been tied up in court.
“XO has been through the bankruptcy process and understands the necessity of having at least two purchase plans in place in order to retain existing customers and attract new customers,” said Brian Oliver, executive vice president of strategy and corporate development. “An added benefit of accepting the XO plan is that customers will be more confident that Global Crossing will survive regardless of whether the STT plan is consummated.”
A decision is pending in bankruptcy court on whether to grant Global Crossing’s request to extend until mid-October STT’s acquisition of the company. If approved, Global Crossing will be prevented from soliciting other potential offers.
