ST Telemedia increases proposed stake in Global Crossing
- ST Telemedia will increase its investment by $125 million to $250 million.
- ST Telemedia will assume Hutchison Telecommunications' investment under the court-approved purchase agreement.
- Investment will fund successful emergence of Global Crossing from Chapter 11, expected to occur in coming months, subject to obtaining anticipated regulatory approvals.
Florham Park, NJ and Singapore, 30 April 2003 - Global Crossing and Singapore Technologies Telemedia Pte. Ltd. (ST Telemedia) today announced that ST Telemedia would assume the rights and obligations of Hutchison Telecommunications Limited (Hutchison) to invest in Global Crossing under the purchase agreement signed 9 August 2002. ST Telemedia will increase its original investment under the purchase agreement from $125 million to a total $250 million for 61.5 percent ownership interest in the reorganized Global Crossing upon its emergence from Chapter 11. Emergence is expected in coming months, subject to obtaining anticipated regulatory approvals.
Hutchison announced today that it has decided to withdraw from the Global Crossing purchase agreement. The agreement, which was approved by the United States Bankruptcy Court for the Southern District of New York on 9 August 2002, allows either investor to take over the investment opportunity of the other on such a withdrawal. ST Telemedia has decided to assume Hutchison's 30.75 percent stake in the reorganized Global Crossing.