Global Crossing and Debt owed Japanese companies

["Charles Jannuzi" <jannuzi@xxxxxxxxxxxxxxxxxxxxxxxxx>]

Seems like some of the bad debt in Japan is owed by Global Crossing. And
wouldn't it figure that Carlyle Group aims to buy Asia Global Crossing.


>From the Taipei Times April 6, 2002

    BLOOMBERG, TOKYO

    Carlyle Group and other investors may bid at least US$250 million for
Asia Global Crossing
    Ltd, which operates undersea communications cables in Asia, the Asian
Wall Street Journal
    reported, citing unidentified officials.

    Carlyle, a US private equity firm with more than US$12.5 billion of
assets, may team up with
    Emerging Markets Partnership, Citic Pacific Ltd and Softbank Asia
Infrastructure Fund to try to
    buy Asia Global Crossing.

    "We are talking to several people, but I can't say if it's any of those
folks," said Madelyn
    Smith, a spokeswoman for Asia Global Crossing. Christopher Ullman, a
Carlyle spokesman,
    declined to comment.

    Asia Global Crossing is 58 percent-owned by Global Crossing Ltd, which
filed for bankruptcy
    in January with US$12.4 billion in debt. Asia Global Crossing hired
Lazard LLC to raise funds
    after sales slumped and Global Crossing refused in December to lend it
US$400 million.

    Both companies missed an April 1 deadline for submitting a required
report on sales, profit and
    other information to the US Securities and Exchange Commission. The
companies cited
    investigations into the parent company's accounting.

    Hutchison Whampoa Ltd (ïMïOïïïï, controlled by billionaire Li Ka-shing
(ïïïïï), and
    state-owned Singapore Technologies Telemedia Ltd own stakes in Asia
Global Crossing and
    have offered to buy 79 percent of the parent for US$750 million.

    Microsoft Corp, the biggest software company, and Softbank Corp, Japan's
biggest Internet
    investor, each own 14.9 percent of Asia Global Crossing.

    "We don't comment on speculation and rumors about potential
investments," said Microsoft
    spokesman Mark Thomas.

    Softbank Asia Infrastructure Fund officials couldn't be reached for
comment.

    Asia Global Crossing said in statement that it has reached agreement
with KDDI Corp and
    NEC Corp on easing payment schedules on loans.

    Asia Global Crossing will pay the cable unit of KDDI US$45 million this
year instead of the
    US$95 million it was due to pay.

    NEC, Japan's biggest personal computer maker, was owed US$240 million
this year by Asia
    Global Crossing.

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CEJ