Global Crossing: Another Model For Bush Administration Business Practices
The pieces of the puzzle look strangely familiar: The Bush Dynasty, Andersen Consulting, a chairman who profited while the company declined in value, and lots of political contributions and connections.
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January 29, 2002
Monday
January 28, 7:24 pm Eastern Time
Andersen fees from Global Crossing get critical eye
By Deepa Babington
NEW YORK, Jan 28 (Reuters) - Andersen, the auditor for collapsed energy trading giant Enron Corp., is now facing questions over its audit of another client now languishing in bankruptcy.
High-speed communications company Global Crossing (NYSE:GX - news) on Monday said it filed for Chapter 11 bankruptcy protection in a move that experts said further compounded the woes of its embattled auditor Andersen....
Global Crossing paid George Bush in stock
By
Bloomberg News
Special to CNET News.com
March 19, 1999, 5:40 AM PT
Global Crossing, a provider of long distance phone services through an undersea fiber-optic network, paid former U.S. President George Bush in stock options now worth about $14.4 million for giving a speech to the company's customers, according to reports....
OCTOBER
22, 2001
NEWS:
ANALYSIS & COMMENTARY
As Global Crossing Sinks, Gary Winnick Stays Dry
He sold shares regularly as the business he ran deteriorated.
...Awful as Global Crossing has been for investors lately, Winnick, who serves as company chairman, hasn't made out too badly. That's because he has long been a prodigious seller of Global Crossing stock. In September, 2000, a spokesperson confirmed that Winnick had sold some $600 million of Global Crossing stock since the company's initial public offering. Winnick received the majority of his shares as result of his $15 million founding investment in the company. And this past May, Pacific Capital Group, an investment firm controlled by Winnick, generated an additional $123 million in proceeds through a complicated financial arrangement known as a collar....
http://www.businessweek.com/magazine/content/01_43/b3754058.htm
Communications
Global Crossing may be an upstart in the wireless business, but its top
three executives are old hands when its comes to campaign contributions.
by Michael Scherer March 5, 2001
...Thanks to its generous contributions, Global Crossing is well positioned to take advantage of the shift. In addition to Cook, two other top executives handed out large donations: founder and chairman Gary Winnick (No. 84, $363,750) and former CEO Leo Hindery Jr. (No. 29, $591,902), who now heads Global Crossing's Internet division. At the Republican National Convention in August, the company spent $250,000 sponsoring fundraisers, including a "Carnevale Italiano" that saluted Italian-American Republicans....
http://www.motherjones.com/web_exclusives/special_reports/
mojo_400/communications.html
January
11, 2002
Commentary
The Wall Street Journal
A
Corporate Crime Wave?
By George Gilder
...Some of these alleged crime lords are familiar. Gary Winnick was party to a previous potlatch at Drexel Burnham, where he played a key role in financing the communications infrastructure through MCI, Telecommunications Inc., Turner broadcasting, and McCaw Cellular. Then he and his associates were alleged to have ravaged savings and loans by inducing some of them to buy those companies' high-yield securities before a government ban briefly destroyed their value. Finally Mr. Winnick boldly launched the world-wide fiber-optic networks of Global Crossing, with, it is implied, the intention of bilking investors and crashing bandwidth prices in what Fortune calls "perhaps the greatest executive ripoff in the history of enterprise" but what is better described as the most efficient global buildout in telecom
history....http://www.gilder.com/AmericanSpectatorArticles/CorporateCrimeWave.htm
...Mr. Cook's philanthropy has had a particular focus on education, youth and minority programs. His national and international volunteer work includes serving as a Trustee of the George Bush Presidential Library Foundation...
http://www.globalcrossing.com/xml/global/gl_com_lead_cook.xml
TELECOMS: DIRECT LINK TO EUROPE PLANNED
Korea Telecom said Thursday that it had signed contracts on direct Internet access with British Telecom, Telecom Italia and other major European companies. The deal allows Korea Telecom's Internet access service program, Kornet, and its high-speed variety, Megapass, to connect to those of European companies without going through the United States. The company plans to expedite Internet connection between Europe and Korea.
Korea Telecom has been paying a sizable sum of money to UUNet, Global Crossing and other American companies to connect to European services. The company can now save millions of won in fees by the direct access contract, it said.
Source : Joong Ang Ilbo 2001.06.21
http://perso.wanadoo.fr/france-coree/kotra/kotra_ltr_01_07.ht
Monday
January 28, 8:09 pm Eastern Time
Global Crossing Files Bankruptcy
By Jessica Hall
PHILADELPHIA (Reuters) - Global Crossing Ltd. (NYSE:GX - news) on Monday said it filed for bankruptcy protection as two of its Asian business partners agreed to pay $750 million to assume control of the high-speed communications services company as it reorganizes in the fourth-largest insolvency in U.S. history....
...Creditors will get a combination of cash, debt and equity in the restructured company. J.P. Morgan Chase & Co. (NYSE:JPM - news) and Citibank, a unit of Citigroup Inc. (NYSE:C - news), are its senior secured creditors. Thirteen of its 20 largest unsecured creditors include equipment makers Lucent Technologies Inc. (NYSE:LU - news) and Alcatel , as well as telephone services companies BellSouth Corp. (NYSE:BLS - news) and Verizon Communications (NYSE:VZ - news), that are owed about $220 million, according to bankruptcy papers.
[Witness:
Mr. Winnick is on the J.P. Morgan Chase National Advisory Board.
Average stockholders of both cos. are being duped big time!]
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Contributed by BuzzFlash Reader Elayne
