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Words from the brink
01 December 2004
As Global Crossing plans to raise a $350 million loan on its UK operation, CFO Dan O'Brien explains how the company survived another bumpy year, how it might sell or close some operations, and where it goes next
Global Crossing is hoping to raise $350 million by the end of 2004 with a loan on its UK operations from institutional investors. The money will be used to pay $75 million owed to main shareholder Singapore Technologies Telemedia, which invested in Global Crossing in 2003 a year after the company went into Chapter 11 bankruptcy protection. STT is owned by Temasek, the investment arm of the Singapore government.
The UK business, acquired as Racal Telecom for $1.65 billion in October 1999, is profitable and cashflow-generating and it currently has no debt, chief financial officer Dan O'Brien told Global Telecoms Business in an interview. When he gave the interview, in early November, he put $300 million on the loan, but his aspirations have increased.
Global Crossing is also considering taking "certain actions" over "less strategic" operations including Frontier Corporation, also acquired in 1999, and IXNet, bought in 2000...
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