XO Offers 'Insurance' Policy for Global Crossing Restructuring

XO Communications issued a revised proposal for a bankruptcy restructuring of Global Crossing that would run in parallel with the company's current efforts to emerge from bankruptcy under the terms of its current Purchase Agreement with Singapore Technologies Telemedia. XO said it is making the new offer because of Global Crossing's deteriorating financial condition coupled with its pending request to extend, until mid-October, STT's exclusive rights to close a deal with Global Crossing. If approved, Global Crossing's request would prevent the bankrupt company from soliciting other potential offers - a circumstance that would likely prevent an alternative plan from being presented, approved, and consummated until the first quarter of 2004, at the earliest. XO worries that Global Crossing might run out of cash by that point. XO's new offer would provide Global Crossing with an alternative plan should the STT acquisition fail. Financial details are posted online.
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