NEW YORK-Global Crossing this week was granted an extension on its exclusive purchase agreement with Singapore Technologies Telemedia Pte. Ltd., by which STT plans to invest $250 million to own 61.5 percent of the bankrupt company.
The exclusivity extension means no other company can file a competing plan of reorganization until Oct. 28, or after the current plan is terminated, which is required by Oct. 14. Thus far, creditors have opposed that sale fearing the deal may not garner regulatory approval because the Singapore government controls STT.
The ruling by the U.S. Bankruptcy Court for the Southern District of New York effectively blocks efforts by other companies including XO Communications Inc., IDT Corp. and Level 3 Communications Inc. to buy Global Crossing.
Further, Global Crossing has reportedly accused XO and Carl Icahn, its chairman, of interfering with a previously arranged merger. XO has made several offers to buy Global Crossing and has already purchased about $790 million, or one-third, of the company’s debt. A July 30 hearing will address the claims.
