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Global Crossing Extends Deadline on Bids for Sale

The Wall Street Journal 12 July 2002

NEW YORK 12 July 2002 - The deadline for bids on Global Crossing Ltd., in Chapter 11 bankruptcy protection since late January, was extended for just a few hours past the original 3 p.m. EDT cutoff Thursday, and the company kept a tight lid on information about any possible offers. But many connected with the proceedings said that few serious bids have been submitted and concede that the timing couldn't have been worse.

People associated with the telecommunications company said they considered extending the deadline for several weeks, but finally decided against that. The deadline comes weeks after WorldCom Inc. announced $3.8 billion in accounting irregularities, a disclosure that cast renewed doubt on Global Crossing's past and future.

Two Asian entities confirmed that they were no longer interested. Singapore Technologies Telemedia Pte. Ltd. and Hutchison Whampoa Ltd. had previously made a preliminary $750 million bid for 79% of the telecom carrier.

Until an auction is held July 24, the situation will remain fluid, as Global Crossing's financial advisers at Blackstone Group and its lawyers at Weil Gotshal & Manges LLP attempt to arouse the competitive juices of bidders and command a higher price for the company's global fiber-optic network.

The results of the process won't be formally disclosed until a filing in the U.S. Bankruptcy Court for the Southern District of New York at the end of the month. A spokeswoman for Global Crossing declined to comment.

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