Global Crossing to take $8 billion write-down

Bankrupt carrier Global Crossing reported Tuesday it would incur an $8 billion write-down of goodwill in the fourth quarter of 2001, reflecting the devaluation of its global long-haul network. The carrier also warned of future write-downs.

Global Crossing has yet to file 2001 earnings figures, but the company stated its plans to record the loss in a filing with federal bankruptcy court in New York. In the filing, Global Crossing said it may log another multimillion write-down of assets in the future but offered no further details.

Global Crossing filed for Chapter 11 bankruptcy protection in late January, after announcing a $750 million bailout plan from Hutchison Whampoa and SingTel. While supporting the Asian company’s plan, Global is still forced to open its assets up for auction under bankruptcy rules. The carrier’s global fiber network has attracted the interest of numerous carriers, with as many as 50 reported potential bidders.

--Kevin Fitchard, Staff Writer