Global in Talks Over 2 Late Bids

Agents for Global Crossing Ltd. were wrapped in “intense” negotiations Thursday with two late bidders for its vast fiber-optic network and other assets as the company tries to work out a deal by today that will bring it out of the nation’s fifth-largest bankruptcy.

The company concluded talks with a third bidder, Los Angeles buyout specialists Tom and Alec Gores, and turned its full attention to offers from a group led by former Global President David Walsh and from one led by Hong Kong conglomerate Hutchison Whampoa Ltd., a source familiar with the process said.

Other bidders have offered to buy large and small pieces of Global, and some of those bids may be folded into any agreement for the sale of the entire company.

The Gores brothers, who operate separate buyout firms, may be out of the running after reworking their offer to try to satisfy Global’s creditors. Their offer consists of $1.2 billion in cash, notes and stock for Global creditors and as much as $1 billion more in funding to operate the Bermuda-based telecommunications company.

Negotiations with bidders over the last few weeks have focused on rearranging and adding to offers, such as providing more cash and less equity, the source said.

Global executives might reveal as soon as today that the company and its creditors have reached agreement on a sale. Or they could delay the process again to work out details before submitting their recommendation to the court, which will consider any deal in a hearing Wednesday.

Both Walsh and Hutchison came into the bidding process late, though Hutchison had been part of a deal to refinance the company when Global filed a petition in January to reorganize debts totaling $12.4 billion. That offer was withdrawn when creditors decided it was inadequate.

At the time, Global’s listed assets of $22.4 billion made it the fourth-largest corporate failure. WorldCom Inc.’s filing last month became the biggest ever, bumping Global to fifth.

Both Walsh and Hutchison come to the table with deep pockets, and all three bidders have experience in telecommunications. Walsh is backed by Bank One Corp.’s venture capital arm, and Hutchison is controlled by billionaire investor Li Ka-Shing.

Hutchison also was involved in three overseas ventures with Global’s majority-owned subsidiary, Asia Global Crossing Ltd., until it bought out Asia Global’s position earlier this year for $120 million. Cash-strapped Asia Global also is seeking funding.

Tom Gores’ company, Platinum Equity, could play a key role in funneling new customers quickly into Global’s network, which connects some 200 cities in 27 countries. Platinum’s NextiraOne designs and manages voice and data systems for some 400,000 corporations worldwide and could provide incentives to get those customers to switch to Global’s network. Global has 85,000 customers.

Global, meanwhile, reported its biggest monthly loss and its lowest sales figure since filing for bankruptcy, according to its monthly financial report filed with the Bankruptcy Court. But it managed to add $17 million to its much-needed cash on hand, which helps it to continue operating.

For June, the company lost $173 million, or 19 cents a share, on revenue of $250 million. The previous month, it lost $137 million, or 15 cents a share, on sales of $262 million.