FLORHAM PARK, N.J. and SINGAPORE, Dec 08, 2003 /PRNewswire-FirstCall via Comtex/ -- Global Crossing and Singapore Technologies Telemedia (ST Telemedia) today announced Global Crossing's new Board of Directors. Lodewijk Christiaan van Wachem will serve as chairman of the board, and Peter Seah will become the vice chairman. Additional new directors include E.C. "Pete" Aldridge, Jr., Archie Clemins, Donald L. Cromer, Richard R. Erkeneff, Lee Theng Kiat, Charles Macaluso, Michael Rescoe, and Robert J. Sachs.

ST Telemedia will become a 61.5 percent equity shareholder of Global Crossing upon consummation of the ST Telemedia-Global Crossing purchase agreement and Global Crossing's emergence from bankruptcy. Under Global Crossing's plan of reorganization, ST Telemedia appoints eight of the directors, while two members are appointed by Global Crossing's creditors committee to form the new ten-member board.

All board appointments will become effective immediately upon Global Crossing's emergence from bankruptcy. The new board of directors intends to work closely with the current management team to build on the accomplishments that have been achieved during the past 22 months and to help Global Crossing become a global telecommunications leader.

Chairman of the Board, Lodewijk van Wachem was president of the Royal Dutch Petroleum Company from 1982 to 1992 and chairman of its supervisory board from 1992 to 2002. He joined the Royal Dutch/Shell Group in 1953 and served in various capacities in Latin America, Africa, the Far East and Europe. In addition to his new role as chairman of the board of Global Crossing, Mr. van Wachem currently serves on the supervisory board of Royal Philips Electronics N.V., on the boards of ATCO (Canada) Ltd. and Zurich Financial Services, and on the executive board of Rand Europe.

Vice chairman of Global Crossing's new board, Peter Seah, president and chief executive officer of Singapore Technologies Group, is also chairman of SembCorp Industries and Singapore Technologies Engineering. He serves on the boards of Singapore Technologies Group and its companies including CapitaLand Limited, Chartered Semiconductor Manufacturing Ltd., StarHub Pte. Ltd., and ST Assembly Test Services. Prior to joining Singapore Technologies Group, Mr. Seah was a banker for 33 years, and served as vice chairman and chief executive officer of Overseas Union Bank.

In addition to the chairman and vice chairman, the other eight new board members include:

In addition to the security committee, Global Crossing's board plans to create an executive committee composed of both directors and non-directors.

Executive committee members are expected to include: Pete Aldridge, a Global Crossing director; Terry Clontz, president and chief executive officer of StarHub; Richard Erkeneff, a Global Crossing director; Lee Theng Kiat, a Global Crossing director and president and chief executive officer of ST Telemedia; Jeremiah Lambert, former co-chairman of Global Crossing's board; John Legere, chief executive officer of Global Crossing; Charles Macaluso, a Global Crossing director and founding principal and chief executive officer of Dorchester Capital Advisors; and Jean Mandeville, chief financial officer of ST Telemedia.

ABOUT GLOBAL CROSSING

Global Crossing provides telecommunications solutions over the world's first integrated global IP-based network, which reaches 27 countries and more than 200 major cities around the globe. Global Crossing serves many of the world's largest corporations, providing a full range of managed data and voice products and services.

On January 28, 2002, Global Crossing Ltd. and certain of its subsidiaries (excluding Asia Global Crossing and its subsidiaries) commenced Chapter 11 cases in the United States Bankruptcy Court for the Southern District of New York (Bankruptcy Court) and coordinated proceedings in the Supreme Court of Bermuda (Bermuda Court). On the same date, the Bermuda Court granted an order appointing joint provisional liquidators with the power to oversee the continuation and reorganization of the Bermuda-incorporated companies' businesses under the control of their boards of directors and under the supervision of the Bankruptcy Court and the Bermuda Court. Additional Global Crossing subsidiaries commenced Chapter 11 cases on April 23, August 4 and August 30, 2002, with the Bermuda incorporated subsidiaries filing coordinated insolvency proceedings in the Bermuda Court. The administration of all the cases filed subsequent to Global Crossing's initial filing on January 28, 2002 has been consolidated with that of the cases commenced on January 28, 2002. Global Crossing's Plan of Reorganization, which was confirmed by the Bankruptcy Court on December 26, 2002, does not include a capital structure in which existing common or preferred equity will retain any value.

On November 18, 2002, Asia Global Crossing Ltd., a majority-owned subsidiary of Global Crossing, and its subsidiary, Asia Global Crossing Development Co., commenced Chapter 11 cases in the United States Bankruptcy Court for the Southern District of New York and coordinated proceedings in the Supreme Court of Bermuda, both of which are separate from the cases of Global Crossing. Asia Global Crossing has announced that no recovery is expected for Asia Global Crossing's shareholders. Asia Netcom, a company organized by China Netcom Corporation (Hong Kong) on behalf of a consortium of investors, has acquired substantially all of Asia Global Crossing's operating subsidiaries except Pacific Crossing Ltd., a majority-owned subsidiary of Asia Global Crossing that filed separate bankruptcy proceedings on July 19, 2002. Global Crossing no longer has control of or effective ownership in any of the assets formerly operated by Asia Global Crossing.

Please visit for more information about Global Crossing.

ABOUT SINGAPORE TECHNOLOGIES TELEMEDIA

Singapore Technologies Telemedia (ST Telemedia) is a leading information and communications company in the Asia-Pacific region. Incorporated in 1994, the company provides a wide range of communications and information services including fixed and mobile communications, Internet exchange and data communications, satellite, broadband and Pay TV. ST Telemedia also is a major shareholder in StarHub, Singapore's info-communications company providing a full range of information, communications and entertainment services over fixed, mobile and Internet platforms; in Indosat, Indonesia's second largest telecommunications service provider; and in Equinix, the largest global network-neutral data center and Internet exchange service company in the United States and the Asia-Pacific region.

ST Telemedia is a subsidiary of the Singapore Technologies Group, a technology-based multinational with operations and interests in more than 20 countries, including the United States. The Group has U.S. investments in Alabama, Arizona, California, Massachusetts, North Carolina, Texas, and Virginia.

Please visit for more information about Singapore Technologies Telemedia.

SOURCE Global Crossing

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From the PR:

As previously announced, Global Crossing's plan of reorganization included the cancellation of existing preferred and common stock. The holders of these previously publicly traded securities received no consideration under the company's plan of reorganization.

which was confirmed by the Bankruptcy Court on December 26, 2002, does not include a capital structure in which existing common or preferred equity will retain any value.

Chief Executive John Legere told Dow Jones Newswires in an interview that the reemergence represents the end of "a long road that began over two years" ago and that the company took an "incredible asset and restructured it."

"This is a big day for the company and a big day for customers," he added.

Global Crossing's major asset - a 100,000-mile, fiber-optic network - connects more than 200 cities in 27 countries and delivers voice and data communications to customers.

Global Crossing, now based in Florham Park, N.J., entered Chapter 11 bankruptcy-court protection in January 2002, almost four months after announcing plans to restructure itself outside of court. That October 2001 plan, which failed to stave off bankruptcy, included the appointment of Legere, then head of Asia Global Crossing Ltd. (AX), as chief executive.

Singapore Technologies Telemedia Pte. (STL.YY), a telecom firm owned by the Singapore government, paid $250 million to acquire a 61.5% stake in the reorganized Global Crossing. Creditors own the rest, while common shareholders get nothing. Global Crossing shares had a peak market value of $48 billion.

Global Crossing entered Chapter 11 burdened by about $11 billion in debt, but leaves with only $200 million in debt and $183 million in preferred shares. That slimmed down debt loan, plus the backing of corporate parent ST Telemedia, will give Global Crossing a leg up on its competitors, Legere said. During its bankruptcy, the company has also pared its operating expenses by nearly two-thirds, to $700 million from $2 billion.

What's more, Global Crossing doesn't plan to go head-to-head with the industry's titans, preferring instead to focus on a smaller niche of customers. "We don't need nor do we plan to defeat the large incumbents," he said.

Legere declined to give financial projections.

Among the areas of growth for Global Crossing over the next few years, Legere said, will be voice over Internet protocol, or VoIP - in other words, phone calls transmitted over the Internet, not over traditional telephone systems.

Roughly one-third, or 2 billion, of the 6 billion phone-call minutes Global Crossing currently handles a month is through VoIP, Legere said. He expects virtually all of the call minutes its transmits to be done over VoIP by "2007 or sooner."

Global Crossing helped clear the way for its reemergence on Monday by finally filing its 2002 annual report with the Securities and Exchange Commission. Within the next two weeks, the firm plans to give the SEC quarterly reports for the first nine months of 2003, Legere said.

Upon his ascent to CEO of Global Crossing in October 2001, Legere gathered employees who were "willing to be flexible and realistic." He demanded frequent and frank communications, the CEO said. He praised the "fortitude" of his employees - who now number less than 5,000, down from over 11,000 workers at the company's peak - in participating in these frank discussions about the company's future.

"We communicated more with customers and employees, I think history will show, than most other companies did," Legere said.

Retaining existing customers, not finding new ones, was a focus for Global Crossing during its nearly two-year stint in Chapter 11, he added. Earlier this year, however, the company began adding to its sales force and it intends now to try to sign new customers.

A settlement with the SEC over how Global Crossing's accounting from 2000 through 2002 remains. Legere said that talks are ongoing but that the SEC has "been giving great feedback."