Global Crossing's bank debt firmed up in trading as the company is growing closer to consummating its deal with Singapore Technologies Telemedia. Traders said $5 million pieces of the bank debt were trading in the 221/4 23 context last week after the market digested recent reports indicating President George W. Bush would approve ST Telemedia's purchase of the bankrupt telecommunications firm. Due to national security concerns, the transaction has to gain approval by the Committee on Foreign Investment in the United States. "We're confident that a favorable decision will result," said John Legere, Global Crossing's ceo, in a written statement. One buysider said bank debt holders were happy that the process was finishing up.
Earlier this summer, the company's bid to extend its period of exclusivity was contested by J.P. Morgan, as the administrative agent to the lenders, as well as XO Communications and IDT Corp., two companies which expressed interest in purchasing Global Crossing. The bankruptcy court ultimately approved the extension until Oct. 28. The court also approved a binding agreement between Global Crossing and ST Telemedia providing for penalties if either party breaks the agreement before Oct 14. A Global Crossing spokeswoman declined to comment beyond Legere's statement.