So much for branding campaign. A day after Global Crossing announced its plans to re-emerge from bankruptcy, and unveiled a massive branding campaign, there is news that company founder, Gary Winnick and his cohorts are being sued by J.P. Morgan to the tune of $1.7 billion for giving the bank false information.
No shit! JP Morgan was one of the most active lenders to Global Crossing, thanks to Jimmy “the fee” Lee. You can read about all their sordid deeds in my book’s chapter 3. It is surprising that JP Morgan waited this long to file the lawsuit. Well better late than ever.
While on the topic of Global Crossing, Singapore Technologies (ST) Telemedia will pay $250 million for a 61.5% stake; it remains a publicly traded company, with former creditors retaining 38.5%. ST Telemedia will also take on $200 million in debt from Global Crossing’s former creditors, all but wiping out the carrier’s former aggregate $11 billion debt load. Global Crossing has re-emerged from Chapter 11 with much of its portfolio and network intact. Despite hacking at its expenses, the company is still to show a bottom line profit.
Like in case of all Broadbandits, no one has been punished for the crimes committed at Global Crossing, and Gary Winnick is still enjoying his ill-gotten $750 million.