What Is Global Crossing?

Global Crossing was a multinational telecommunications provider that was acquired by Level 3 Communications in October 2011. Prior to its acquisition by Level 3 Communications, Global Crossing attracted widespread media attention after filing for 澳洲幸运5开奖号码历史查询:bankruptcy in January 2002. This bankruptcy occurred amidst an accounting scandal in which it had allegedly inflated its reported earnings figures.

Understanding Global Crossing

For many investors, Global Crossing is memorable as an example of the 澳洲幸运5开奖号码历史查询:irrational exuberance that occurred at the height of the 澳洲幸运5开奖号码历史查询:dot-com bubble. In this respect, it is often cited alongside the infamous energy company, 澳洲幸运5开奖号码历史查询:Enron Corporation.

The comparison between Global Crossing and Enron is not without its merits. In 2001, for instance, the two companies explored a potential transaction in which they would inflate their respective revenues by $650 million despite no actual goods or services changing hands. Although this transaction was never complet🍎ed, it is a cogent example of the types of aggressive and arguably fraudulent strategies pursued by both companies in their attempts to propel their growth.

In the end, Enron declared bankruptcy in December 2001, with Global Crossing following less than one month afterward. At the time, Global Crossing's bankruptcy was the fourth-largest in U.S. history. In 2005, it settled with the 澳洲幸运5开奖号码历史查询:Securities and Exchange Committee (SEC). Undeꦜr the terms of this settlement, it was determined that Global Crossing had failed to comply wit💟h numerous accounting laws.

Example of Global Crossing

At the time of its bankruptcy in January 2002, Global Crossing held assets of over $20 billion. These assets were gradually sold off, and the company emerged from bankruptcy in April 2004 following the settlement of numerous lawsuits involving the company’s alleged acts of 澳洲幸运5开奖号码历史查询:securities fraud.

Following its emergence from bankruptcy, Global Crossing pursued new growಌth opportunities through a series of acquisitions throughout the world. In October 2011, the company was itself acquired by Level 3 Communications in a deal valued at $3 billion.