Bids May Help Global Emerge From Chapter 11

Executives at Global Crossing Ltd. said Tuesday that with bids for the company in hand, the worldwide fiber-optic network builder can soon emerge from bankruptcy protection as a strong player in the increasingly battered telecommunications industry.

John Legere, the company’s chief executive, said in an interview that he was encouraged by bids submitted Thursday as well as by the company’s effort to establish itself as a viable operation that can survive without massive financial aid.

“We’ve got multiple ways to restructure this company,” Legere said. “Anybody who thinks we’re having a fire sale on these assets or that we would take any number just to move this company forward is sadly mistaken.”

He acknowledged that a number of potential bidders dropped out in the last month as problems in the industry deepened with the woes at WorldCom Inc., the nation’s second-largest long-distance carrier that overstated revenue by $3.9 billion over five quarters, and at Qwest Communications International Inc. But, he said, a few bidders surfaced with the prospect of investing in an industry that will probably have fewer competitors.

The company has been going over offers with a creditors committee and a bankers’ group, which together are owed $8 billion. The two groups will decide which bid, if any, it will accept. They also could look at results of the company’s negotiations with bidders to boost offers or to work together for a higher return, Legere said.

There are possibly three bidders for the entire company, including a joint offer from two Los Angeles buyout firms run by brothers Tom and Alec Gores, and a handful looking to pick up parts of a system connecting 200 cities in 27 countries.

Legere refused to disclose the names, the number of bidders or other details.

“The process is designed for those parties that mostly want to look at substantially all the assets of the ongoing franchise,” Legere said. “That’s where maximum return is going to be for the creditors and the banks.”

In a fluid process loosely resembling an auction, a winning bidder will be determined next Wednesday, though Global Crossing can change the date. A court hearing to approve the winning bid and possibly hear objections was delayed from July 30 to Aug. 7.