Asia Global Crossing to use grace period for note payment, starts discussions

New York, April 15 - Asia Global Crossing said it will make use of the 30-day grace period for the interest payment due April 15 on its $408 million of 13.375% senior notes maturing 2010.

The Hamilton, Bermuda telecommunications company said the grace period will allow more time for discussions with a committee representing holders of a majority of its bonds on a plan to restructure the debt and for discussions with potential equity investors.

Asia Global Crossing said as of March 31 it had $351 million of cash, sufficient to run its business in the ordinary course and, should it determine it appropriate, to pay the interest due on its bonds before the grace period expires.

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