Storm clouds gather over Global Crossing

4 May 2004

Troubled telecoms carrier Global Crossing has selected Deloitte & Touche to review its accounting procedures amid fears it may face delisting from the Nasdaq stock exchange. Last week the Bermuda-based company, which only recently emerged from Chapter 11 bankruptcy protection, warned that it was restating its 2003 earnings, reviewing its results for 2002 and delaying reports for the current fiscal year following concerns that it had understated its liabilities for access charges to the tune of USD50 million to USD80 million. Deloitte & Touche is now tasked with investigating Global’s cost of access liabilities and cost of access expenses and the related internal controls.