ST Telemedia and Global Crossing Secure Final Regulatory Approval
- Federal Communications Commission approves application for consent to transfer control of Global Crossing to ST Telemedia
Florham Park, NJ and Singapore, October 8, 2003 - Global Crossing and Singapore Technologies Telemedia (ST Telemedia) announced today that the Federal Communications Commission (FCC) has approved Global Crossing's application for transfer of control to ST Telemedia. With today's approval, a newly constituted Global Crossing is expected to emerge from bankruptcy shortly.
"We're pleased to have received approval from the FCC," said Lee Theng Kiat, president and chief executive officer of ST Telemedia. "Now we look forward to building on this progress to help expand and strengthen Global Crossing's business in the United States and worldwide. Upon emergence from bankruptcy, Global Crossing will be well positioned to continue integrating and building its services worldwide, and expanding its relationships with existing and new customers."
"Today's FCC approval is a major milestone – the last regulatory requirement for our emergence from Chapter 11," commented John Legere, Global Crossing's chief executive officer. "After 20 months of restructuring, Global Crossing is poised to emerge with an unrivaled IP based network, a growing portfolio of products and services, and a firm base of 75,000 customers."
FCC approval was the final regulatory clearance needed for the ST Telemedia-Global Crossing purchase agreement to proceed. With ST Telemedia's investment, the reorganized Global Crossing will continue to provide superior voice, data, and broadband network and value-added communications services in the United States and worldwide, and build on its relationships with existing and new customers.
ST Telemedia is investing $250 million for a 61.5 percent ownership position. Global Crossing creditors will receive a 38.5 percent equity interest. "In ST Telemedia we have a strong and experienced telecom investor that recognizes the hard work of Global Crossing's thousands of employees and its leadership team," continued Legere. "We now look forward to building on Global Crossing's position as a leading provider of global telecommunications services with our emergence from Chapter 11 soon."
During its restructuring, Global Crossing has taken significant measures to reduce operating expenses while continuing to innovate new products and services and improve customer service levels. Global Crossing recently launched an integrated IP VPN service platform based on MPLS (Multi-Protocol Label Switching) technology, and has introduced Managed Services on a global scale, launched a suite of leading edge video conferencing services, and maintained its position in the industry as one of the leading innovators in Voice over IP (VoIP) technology - all within a streamlined capital budget.
Global Crossing currently serves more than 75,000 carrier, enterprise and government customers worldwide, including 40 percent of the Fortune 500, and more than 700 major carrier customers. With a global fiber-optic network that connects more than 200 major cities and a portfolio of next generation voice, data and IP solutions, Global Crossing is poised to realize growth opportunities in the market for global services.