- The Washington Times - Tuesday, January 29, 2002

NEW YORK (AP) Former high-flying telecommunications network builder Global Crossing Ltd. filed for bankruptcy protection yesterday in one of the largest corporate failures.
The New York Stock Exchange immediately halted trading in the shares of the Bermuda-based company, which spent billions building a worldwide fiber-optic network only to see bandwidth demand wither.
As the dot-com bubble lost air, investors dumped holdings in Global Crossing, deciding it was over-indebted. Now, shareholders could be left with worthless stock.
At Friday's closing price of 51 cents, shares in the company had dropped below the NYSE listing standard, with the average closing price below $1 for 30 consecutive trading days. In February 2000, Global Crossing's stock had peaked at $61.
"This is a complete disaster," said Pat Comack, a telecommunications analyst with Guzman & Co., a Miami investment bank. "I thought they had a chance."
Global Crossing's insolvency is the fourth-largest public company bankruptcy, in terms of assets, in U.S. history, according to tracking firm BankruptcyData.com.
According to its filing in U.S. bankruptcy court, Global Crossing counted $22.4 billion in assets. By comparison, the assets of retailer Kmart Corp., which declared bankruptcy last week, stood just over $16.3 billion.
The NYSE said it would apply to the U.S. Securities and Exchange Commission to delist the company.

Copyright © 2018 The Washington Times, LLC. Click here for reprint permission.

The Washington Times Comment Policy

The Washington Times welcomes your comments on Spot.im, our third-party provider. Please read our Comment Policy before commenting.


Click to Read More and View Comments

Click to Hide