Global Crossing sparked the market again this week with more than $50 million changing hands in the 24 range as bidders Hutchison Whampoa and Singapore Technologies Telemedia continue to negotiate the value of the company's assets with Global Crossing and its creditors. The credit had been trading in 22-23 range. The company's lending group was hoping that the two bidders would sweeten their offer, but Hutchison Whampoa and Singapore Technologies told creditors on Thursday that they would not, according to a trader. A large piece was rumored to be auctioned in the 25-26 context on Thursday afternoon.
The company is currently burning through its cash and if it cannot reach a deal by the end of the summer it will have to liquidate, according to an analyst. Hutchison Whampoa and Singapore Technologies' are proposing to inject $750 million in to the Global Crossing for a 79% stake. Creditors would get $300 million and 21% of the restructured company. The bank debt is subordinate to $2 billion of trade receivables held at Global Crossing's subsidiary level, the analyst explained. Calls to Dan Cohrs, Global Crossing executive v.p. and cfo, were referred a spokeswoman who declined to comment on the ongoing negotiations.