The New York bankruptcy court has approved the sale of Global Crossing to Hutchison Telecommunications and Singapore Technologies Telemedia. The two companies will acquire a 61.5% stake in Global Crossing after the company emerged from Chapter 11 bankruptcy protection. The sale means that the auction of Global Crossing’s assets, which was due to take place on August 14, will not take place.
Global Crossing’s banks and creditors are believed to have supported the bid from Hutchison and Singapore Technologies Telemedia. The company’s banks and creditors are to receive around 38.5% of the equity in Global Crossing as part of the company’s new constitution. The two groups are expected to receive around $300 million in cash and $200 million of new debt in senior notes.
The deal will mean that Global Crossing will retain Global Marine, its conferencing division and its UK business division. These divisions were previously put up for sale as Global Crossing attempted to conserve cash. Global Crossing filed for bankruptcy protection in January of this year.