Posted on 06/30/2003 11:02:40 AM PDT by SierraWasp
1:35PM XO, Icahn to obtain 1/3 of Global Crossing senior debt by Jeffry Bartash
WASHINGTON (CBS) -- XO Communications on Monday said it's received commitments allowing it to acquire about one-third of the senior secured debt held by creditors of Global Crossing, the bankrupt communications carrier. In a tender offer, XO said creditors holding $495 million in senior secured debt agreed to sell their stakes by the June 27 deadline. That gives XO control of about $795 million of Global Crossing's $2.21 billion in senior secured debt. XO, backed by billionaire Carl Icahn, the noted "corporate raider," is trying to acquire Global Crossing and block an offer by Singapore Technologies Telemedia.
Yeah but it will be up to us to find it!
This is the key. More than likely XO is trying to get the choice cuts off the carcass, at bargain basement prices. (i.e. We'll be Happy to swap our puny debt for THIS subsidiary, or platform, or whatever).
Not really, but I just picked up a new client that used to work for MCI Worldcom and is having to start all over!!! Marriage is down the tubes, $6,K/mo. salary gone down to new job at $2.5K/mo., other family tradgedies... Life can be dang tough on a single parent family!!!
They also have strong links with the Chinese Military through the PLA (Peoples Liberations Army). Also lot of stories about drug and people smuggling. However the best man to talk about this is a fellow freeper with the surname "Head"
To those of you who do not know Freeport, its 56 miles from Fort Lauderdale, Miami Florida.
Anyway, to cut a long story short they tried to buy Global Crossing last year and there were lots of Freepers and politicians out there shouting about, as a threat to national security, and for what ever reason it fell through.
Maybe they have come to a deal with XO to only buy the things they want, rather than the whole lot. I hope the government is going to keep a very sharp eye on this one, once it is in the hands of private owners and not lawyers and administrators.
.....they used to be concentric.....
.....they are a web hosting service for one thing.....
..... Here's a link to their website.....
DOW JONES NEWSWIRES RESTON, Va. -- Less than six months after emerging from Chapter 11 bankruptcy protection, XO Communications Inc. (XOCM) offered to acquire bankrupt telecommunications company Global Crossing Ltd (GBLXQ) for more than $700 million.
In a press release Friday, financier Carl Icahn, who owns at least 80% of XO Communications and serves as its chairman, said the offer will provide significantly more proceeds to Global Crossing creditors than the current bid by Singapore Technologies Telemedia Ltd. (P.STL).
Under that deal, Singapore Technologies agreed to pay $250 million for a 61.5% stake in Global Crossing. The Singapore-owned company had partnered with Hong Kong conglomerate Hutchison Whampoa Ltd. (H.HUW) on the bid, but pulled out early this month after U.S. authorities announced a heightened investigation into the transactions' security issues.
Icahn said XO's offer is comprised of $250 million in cash, $200 million of new 11% secured notes secured by Global Crossing's assets, $200 million in junior preferred stock in XO unit New Global Crossing, and 15 million five-year warrants to acquire XO stock at $10 a share.
XO plans to provide Global Crossing's banks and bond claim holders with the same amount of cash and new notes as in the Singapore Technologies plan, and to increase the equity consideration received by each holder by more than $50 million, Icahn said.
The financier wasn't immediately available for further information on the offer, which was made directly to advisers for the bondholders, banks and Global Crossing.
Icahn noted in the release that the XO offer can close "without regulatory headaches or financing contingencies," and will provide "tremendous synergies."
A Global Crossing spokeswoman didn't have any immediate comment.
The Hutchison Whampoa/Singapore Technologies bid to buy a majority stake in Global Crossing began running into trouble in February, when officials from a secretive multiagency task force, the Committee on Foreign Investment in the U.S., said they would launch a formal investigation over concerns about Hutchison's ties to China.
The U.S. government wasn't alone in its security concerns; long-distance carrier IDT Corp. (IDT) said it was willing to buy Global Crossing for $255 million to keep the company in U.S. hands.
IDT said selling Global Crossing to a foreign company could threaten U.S. national security, pointing out that the company carries data for the Justice Department, the Central Intelligence Agency and the Federal Bureau of Investigation.
Singapore Technologies has called the Global Crossing acquisition an important part of its strategy to expand its portfolio of telecommunications-related investments.
A spokesman with Singapore Technologies said the company doesn't have any comment, noting that Global Crossing plans to issue a statement shortly.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.