Global Crossing today won a bankruptcy court's approval to sell itself for pennies on the dollar to two Asian investors in a bid to emerge intact from Chapter 11 proceedings.
Under the deal approved during a hearing at bankruptcy court in New York, Hong Kong's Hutchison Whampoa and Singapore Technologies Telemedia would take a 61.5 per cent stake in Global Crossing in return for about $300 million in cash and $200 million in notes, according to Mr Joseph Ryan, an attorney for the creditors' committee.
Banks and other non-bank creditors would get 38.5 per cent of the company.
Global Crossing filed in January for what was then the fourth-largest bankruptcy on record, as it buckled under $12.4 billion in debt, falling prices, and a glut of high-speed network capacity - which it couldn't sell.
The company also faces investigations into its accounting practices by the US Justice Department, the Securities and Exchange Commission, and the US Congress.