Global Crossing to get help from new owner

30 Apr 2004

Singapore Technologies Telemedia (STT), the state-owned company that recently purchased one-time bankrupt fibre-optic carrier Global Crossing, has said that it will provide up to USD100 million in short-term funding to its new subsidiary. STT made the announcement in response to this week’s revelation by Global Crossing that it had understated liabilities for access charges in 2003 to the tune of between USD50 million and USD80 million. The Bermuda-registered company has warned that the hiccup will force it to restate earnings for 2003, review its 2002 figures, and most likely delay its report for the current fiscal year. Analysts have predicted that STT will have to pump at least USD250 million into Global Crossing in 2004 just to keep the carrier operational.