Global Crossing Executives to Testify
The two top executives of troubled global fiber-optic network carrier Global Crossing Ltd. will testify before a congressional panel investigating the company’s collapse.
Global Crossing said in a statement that Chief Executive John Legere and Chief Financial Officer Dan Cohrs will appear before the subcommittee on oversight and investigations of the House Committee on Financial Services on Thursday .
The panel’s chairwoman, Rep. Sue W. Kelly (R-N.Y.), said the purpose of the hearing was “to examine the effects of the Global Crossing bankruptcy on investors, financial markets and employees,” the company said.
The company, based in Hamilton, Bermuda, but operated from Beverly Hills, filed for bankruptcy protection Jan. 28.
Global Crossing, which operates a high-speed communications network linking 200 cities in 27 countries, has been the target of an investigation by securities regulators and the FBI.
A former finance executive who is suing Global Crossing over his dismissal has alleged that the company engaged in misleading transactions that boosted revenue on paper through largely worthless capacity swaps with other telecommunications companies.
Last week the House Energy and Commerce Committee requested documents from the company relating to accounting issues and insider stock sales.
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