https://www.channelfutures.com/wp-content/themes/channelfutures_child/assets/images/logo/footer-new-logo.png
  • Home
  • Technologies
    • Back
    • SDN/SD-WAN
    • Cloud
    • RMM/PSA
    • Security
    • Telephony/UC/Collaboration
    • Cable
    • Mobility & Wireless
    • Fiber/Ethernet
    • Data Centers
    • Backup & Disaster Recovery
    • IoT
    • Desktop
    • Artificial Intelligence
    • Analytics
  • Strategy
    • Back
    • Mergers and Acquisitions
    • Channel Research
    • Business Models
    • Distribution
    • Technology Solutions Brokerages
    • Sales & Marketing
    • Best Practices
    • Vertical Markets
    • Regulation & Compliance
  • MSP 501
    • Back
    • MSP 501 Rankings
    • NextGen 101 Rankings
  • Intelligence
    • Back
    • Galleries
    • Podcasts
    • From the Industry
    • Reports/Digital Issues
    • Webinars
    • White Papers
  • Channel Futures TV
  • EMEA
  • Channel Chatter
    • Back
    • People on the Move
    • New/Changing Channel Programs
    • New Products & Services
    • Industry Honors
  • Resources
    • Back
    • Channel Futures 20: Top Tech Providers
    • Advisory Boards
    • Industry Organizations
    • Our Sponsors
    • Advertise
    • 2023 Editorial Calendar
  • Awards
    • Back
    • 2022 MSP 501
    • Channel Influencers
    • Circle of Excellence
    • DE&I 101
    • Technology Advisor 101 (TA 101)
    • Channel Leaders Lists
  • Events
    • Back
    • 2023 Call for Speakers
    • CP Conference & Expo
    • MSP Summit
    • Channel Partners Europe
    • Channel Partners Event Coverage
    • Webinars
    • Industry Events
  • About Us
  • DE&I
Channel Futures
  • NEWSLETTER
  • Home
  • Technologies
    • Back
    • SDN/SD-WAN
    • Cloud
    • RMM/PSA
    • Security
    • Telephony/UC/Collaboration
    • Cable
    • Mobility & Wireless
    • Fiber/Ethernet
    • Data Centers
    • Backup & Disaster Recovery
    • IoT
    • Desktop
    • Artificial Intelligence
    • Analytics
  • Strategy
    • Back
    • Mergers and Acquisitions
    • Channel Research
    • Business Models
    • Distribution
    • Technology Solutions Brokerages
    • Sales & Marketing
    • Best Practices
    • Vertical Markets
    • Regulation & Compliance
  • MSP 501
    • Back
    • MSP 501 Rankings
    • NextGen 101 Rankings
  • Intelligence
    • Back
    • Galleries
    • Podcasts
    • From the Industry
    • Reports/Digital Issues
    • Webinars
    • White Papers
  • Channel Futures TV
  • EMEA
  • Channel Chatter
    • Back
    • People on the Move
    • New/Changing Channel Programs
    • New Products & Services
    • Industry Honors
  • Resources
    • Back
    • Channel Futures 20: Top Tech Providers
    • Advisory Boards
    • Industry Organizations
    • Our Sponsors
    • Advertise
    • 2023 Editorial Calendar
  • Awards
    • Back
    • 2022 MSP 501
    • Channel Influencers
    • Circle of Excellence
    • DE&I 101
    • Technology Advisor 101 (TA 101)
    • Channel Leaders Lists
  • Events
    • Back
    • 2023 Call for Speakers
    • CP Conference & Expo
    • MSP Summit
    • Channel Partners Europe
    • Channel Partners Event Coverage
    • Webinars
    • Industry Events
  • About Us
  • DE&I
    • Newsletter
  • REGISTER
  • MSPs
  • VARs / SIs
  • Agents
  • Cloud Service Providers
  • Channel Partners Events
 Channel Futures

Telephony/UC/Collaboration


Global Crossing Recovery Hits Speed Bump

  • Written by Channel
  • June 30, 2004




Four months out of bankruptcy, Global Crossing Ltd. is taking a detour on its road to recovery. The carrier disclosed in April the access charges it paid to local phone companies were greater than it had estimated in its financial statements.

Global Crossing revealed it may have to restate financial results for 2002 and 2003 depending on the outcome of an investigation into the accounting issue.

The company says a preliminary assessment indicates it underestimated its accrued cost-of-access liability at year-end 2003 by approximately $50 million to $80 million. Global Crossing’s “cost of access operating expenses” totaled $1.915 billion in 2003.

Following the announcement, Global Crossing disclosed it had been notified its shares may be delisted from the NASDAQ National Market due to noncompliance with filing requirements. NASDAQ representatives did not respond to a request for comment.

Lawsuits have been filed against Global Crossing officers on behalf of investors, alleging the executives depicted a false picture of company financials. Shares of Global Crossing have declined precipitously since the beginning of the year. On May 24, shares closed at $14.09, down from $34.50 Jan. 2. Global Crossing emerged from bankruptcy in December, nearly two years after collapsing under $12.4 billion in debt.

In March, along with reporting its 2003 earnings, the company provided guidance for 2004. Global Crossing projected annual revenue of between $2.55 billion and $2.7 billion, down from $2.93 billion in 2003. Including stock compensation expense, the company projected an EBITDA (earnings before interest, taxes, depreciation and amortization) loss of $130 million to $160 million.

A Global Crossing spokeswoman says the guidance is no longer valid. “Any guidance we gave when we put out Q4 earnings must be disregarded due to our review into our cost-of-access liabilities and possible restatements,” she explains.

Despite the accounting setback and sinking stock price, the company also has been the subject of some positive headlines in recent months. On May 19, Global Crossing announced reaching an agreement with an affiliate of Singapore Technologies Telemedia to secure a $100 million bridge loan. ST Telemedia acquired a 61.5 percent stake in Global Crossing as part of its massive restructuring.

Besides ST Telemedia, some big-name investors also are backing Global Crossing. Carlos Slim, the richest man in Latin America, and his family are seeking to acquire an interest in the company exceeding 10 percent but less than 20 percent, according to a May 18 filing with the Vermont Public Service Board. In March, Global Crossing acknowledged Slim and his family acquired a 9.1 percent share of common equity in the company, or 5 percent of total equity.

The Slim family has a controlling interest in Telefonos de Mexico, SA (Telmex), the biggest phone company in Mexico, and numerous other telecommunications companies in Latin America, according to the filing; the family also owns roughly a 13 percent stake in MCI.

“Having major investors of the Slim entities’ significant stature and reputation would enhance Global Crossing’s ability to attract capital investment,” the filing states.

Slim, who (according to Forbes Magazine) has a net worth of $13.9 billion, is not the only billionaire with a stake in Global Crossing. Billionaire Richard Rainwater, of Fort Worth, Texas, bought 2.61 million shares of Global Crossing stock for $24.4 million between March 17 and May 11, according to a Securities and Exchange Commission filing. Rainwater owns a 13.6 percent stake in Global Crossing, according to the filing, and purchased 318,000 shares for $13.68 a share the day the company disclosed the accounting mishap.

Links

Global Crossing Ltd.       www.globalcrossing.com
Nasdaq National Market       www.nasdaq.com
Securities and Exchange Commission  www.sec.gov
Telmex www.telmex.com

Tags: Agents Telephony/UC/Collaboration

Most Recent


  • call for speakers
    Channel Futures Leadership Summit Call for Speakers Open
    Speaker applications for “The New Style of Leadership” are open until July 3.
  • Microsoft Teams
    UJET Contact Center Platform Integrates with Microsoft Teams
    The aim is to enhance first contact resolution and customer satisfaction.
  • Dell Technologies World
    Dell Technologies World: 5 Top Customer Challenges
    There are five big challenges that customers are grappling with, according to Dell Technologies’ co-COO, Chuck Whitten.
  • endpoint security
    Endpoint Protection Provider Signs Avant in TSD Expansion
    Xcitium's vice president of strategic partnerships said Avant is leading the TSD channel in cybersecurity.

Leave a comment Cancel reply

-or-

Log in with your Channel Futures account

Alternatively, post a comment by completing the form below:

Your email address will not be published. Required fields are marked *

Related Content

  • Woman with questions
    Should We Just Call Master Agents Distributors?
  • Benefit, Plus Sign
    TBI, Avant Add New Cloud, Security Suppliers to Lineups
  • CIO
    ScanSource Hires New CIO to Lead Global IT Strategy
  • Select a Hire
    Telarus Hires Megapath, Fusion Connect Vet Dan Foster as Latest CRO

Upcoming Events

View all

Channel Partners Europe

June 13, 2023 - June 14, 2023

Channel Futures Leadership Summit

October 30, 2023 - November 2, 2023

Channel Partners Conference & Expo

March 11, 2024 - March 14, 2024

Galleries

View all

Survey: Backups Are Prime Targets for Ransomware Attacks, Most Remain Exposed

May 26, 2023

Faces of the Partner: 6 New Tech Advisors Entering the Channel

May 26, 2023

Broadcom-VMware, Alibaba Cloud, Red Hat, Google Cloud: A Hefty Roundup

May 24, 2023

Industry Perspectives

View all

Dell Technologies World: Dell Apex Expanded Across On-Premises, Cloud and Edge

May 22, 2023

Identity Is Increasingly Valuable – and Targeted

May 18, 2023

Gaining a Competitive Advantage through AV Managed Services

May 10, 2023

Webinars

View all

From Problem to Profit: Mastering the Science of Selling Using Business Outcomes

May 9, 2023

Meet the 2023 Channel Futures Channel Influencers

April 13, 2023

DE&I Dialogue: How the Right DE&I Initiatives Can Propel Your Business

April 5, 2023

White Papers

View all

6 UCaaS Reseller Challenges and How Real World Businesses Solved Them

February 1, 2023

Frost Radar: North American UCaaS Market, 2022

February 1, 2023

The Complete Guide to White-Label UCaaS for Reseller Success

February 1, 2023

Channel Futures TV

View all

Coffee with Craig and James Episode No. 123: MartinWolf M&A Advisors, CP Expo Preview

UScellular Takes On Rivals with Partner Program Simplicity

April 21, 2023

OpenText Simplifying Deal Registration, Doubling Down on MDF

April 21, 2023

Everything-as-a-Service: CloudBlue Touts Critical Customer Transition

April 18, 2023

Twitter

ChannelFutures

Who has been a diversity, equity & inclusion role model in your career? Take a moment to honor their initiatives in… twitter.com/i/web/status/1…

May 29, 2023
ChannelFutures

Paul Green @msp_voice will help MSPs gain more #customers and #sales at @ChannelEurop June 13.… twitter.com/i/web/status/1…

May 26, 2023
ChannelFutures

.@coalesceIO unveils revamped partner program. #datatransformation dlvr.it/SphJm4 https://t.co/s7fYAVmFGD

May 26, 2023
ChannelFutures

.@Veeam #Ransomeware survey: backups are not adequately protected, 85% suffered at least 1 attack in past year… twitter.com/i/web/status/1…

May 26, 2023
ChannelFutures

.@MSPSummit call for speakers is open now through July 3. The theme for this year’s summit is “The New Style of Lea… twitter.com/i/web/status/1…

May 26, 2023
ChannelFutures

Channel Futures interviewed six individuals who started an agency in the last two years. dlvr.it/SpgV6l https://t.co/JXKhJcw31A

May 26, 2023
ChannelFutures

Channel Futures interviewed six individuals who started an agency in the last two years. dlvr.it/SpgTQg https://t.co/7eIp0XgwQ2

May 26, 2023
ChannelFutures

Channel Futures interviewed six individuals who started an agency in the last two years. dlvr.it/Spg7JZ https://t.co/ETaeFysCYO

May 26, 2023

MSP 501

The industry's largest and most comprehensive partner awards program.

Newsletters and Updates

Sign up for The Channel Report, Channel Futures Update, MSP 501 Newsletter and more.

Live Channel Events

Get the latest information on the next industry-leading Channel Partners event.

Galleries

Educational slide shows and images from live events.

Media Kit And Advertising

Want to reach our audience? Access our media kit.

DISCOVER MORE FROM INFORMA TECH

  • Channel Partners Events
  • Telecoms.com
  • MSP 501
  • Black Hat
  • IoT World Today
  • Omdia

WORKING WITH US

  • Contact
  • About Us
  • Advertise
  • Newsletter

FOLLOW Channel Futures ON SOCIAL

  • Privacy
  • CCPA: “Do Not Sell My Data”
  • Cookie Policy
  • Terms
Copyright © 2023 Informa PLC. Informa PLC is registered in England and Wales with company number 8860726 whose registered and Head office is 5 Howick Place, London, SW1P 1WG.
This website uses cookies, including third party ones, to allow for analysis of how people use our website in order to improve your experience and our services. By continuing to use our website, you agree to the use of such cookies. Click here for more information on our Cookie Policy and Privacy Policy.
X