Global Crossing bank debt skidded down to the high 20s last week, from the 34 range, on speculation the company will file for Chapter 11 protection. As LMW went to press late last week, there were no reports of a filing. Approximately $20 million traded over the week in a number of small trades, according to some, although one dealer questioned whether that much had moved. J.P. Morgan and Goldman Sachs are reportedly active in the name, but officials at both shops declined to comment. Calls to Dan Cohrs, cfo, were not returned. Spokesman John Schmidt declined to comment on trading levels and the company's financial position.
Market players say the company's issues stem from too much debt, compounded by a weakening telecom sector. Global Crossing was trading in the 45 range in late November after the company announced the sale of a business unit for $160 million (LMW, 11/25). Global Crossing has a $3 billion deal that expires in 2004. Pricing on the revolver is LIBOR plus 23/ 4%.