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Monday May 20, 10:19 am Eastern Time Press Release SOURCE: Fiber Optek REPEAT/Fiber Optek Unveils $7.3 Billion Proposed Plan of Reorganization for Global Crossing Ltd. WAPPINGERS FALLS, N.Y.--(BUSINESS WIRE)--May 20, 2002--Fiber Optek today made public a plan of reorganization for Global Crossing Ltd. (OTCBB:GBLXE - News), which it intends to sponsor. According to Michael S. Pascazi, president and chief executive officer of Fiber Optek, its plan provides a sizeable current cash payment, a significant ownership position to the creditors as well as a meaningful equity position for existing Global Crossing shareholders. Highlights of the plan follow: The name "Global Crossing" will be changed to "Fiber Optek Networks Ltd." since "Global Crossing" has become a negative brand. It is projected that the restructured company will have a book value of approximately $9.7 billion. It is also projected that the per share common stock price will rise approximately 10,000 percent from the current level ($0.05 to $5.00) after the restructuring. Secured creditors will receive $250 million in cash, assignment of $500 million in accounts receivable, approximately 28 percent equity and zero cost warrants convertible to approximately 8 percent additional equity in the reorganized company. Unsecured creditors will receive $50 million in cash and zero cost warrants convertible to approximately 3 percent equity in the reorganized company. Existing shareholders will retain approximately 25 percent equity and will be allowed to purchase warrants convertible to an additional approximate 25 percent of the equity in the reorganized company. Under Chapter 11 bankruptcy rules, Global Crossing`s management has an exclusive right for 120 days to submit a formal plan of reorganization. Pascazi asserted that as soon as that period of exclusivity ends, now expected to be in late June, Fiber Optek intends to submit its competing plan to the bankruptcy court. Fiber Optek also intends to appoint Pascazi as Chairman and CEO and Frank P. Zarzeka Jr. as COO of the reorganized company. Both men are entrepreneurs with 20 years experience in the fiber optic telecommunications industry and have no prior relationship with Global Crossing. Both men were with IBM before founding Fiber Optek, a leading developer and installer of fiber optic telecommunications networks. Pascazi is of the opinion that the existing management of Global Crossing no longer commands the respect and confidence of the investing public or its clients, and he has pledged to all parties that he will take all steps necessary to restore that confidence should Fiber Optek`s plan come to fruition. Fiber Optek is currently seeking creditor and stockholder support for its plan. Complete details can be found at www.gblxplan.com. The information contained herein does not, and is not, intended to constitute a formal plan of reorganization for the debtor Global Crossing Ltd. It is intended to stimulate the free exchange of information and ideas among like-minded persons. A formal plan may not and will not be submitted to the court until such time as the debtor`s exclusivity rights under section 1121 of the U.S. Bankruptcy Code expire. Fiber Optek is a registered trademark of Fiber Optek Interconnect Corp. NOTE: This news release may contain other trademarks which are the property of their respective owners. |
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| aus der Diskussion: | WORLDCOM-Beginnt ab heut der grösste Rebound der letzten Zeit ? |
| Autor (Datum des Eintrages): | donnerpower (20.05.02 18:02:25) |
| Beitrag: | 21 von 232 (ID:6446816) |
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