Asia Global Crossing files for Chapter 11, expects $80 million to pay creditors

New York, Nov. 18 - Asia Global Crossing Ltd. said it agreed a restructuring plan that will see the company sold to a new company called Asia Netcom, to be backed by China Netcom (Hong Kong) with Newbridge Capital and Softbank Asia Infrastructure Fund as investors. The Hong Kong-based telecommunications company made a Chapter 11 filing in the U.S. Bankruptcy Court for the Southern District of New York to implement the transaction.

Asia Global Crossing added that it expects to have $80 million in cash left after the sale to pay creditors and some expenses.

The new company will assume obligations to vendors but they will be restructured, Asia Global Crossing said.

Closing for the sale is expected in the first quarter of 2003, subject to court approval. U.S. bankruptcy law also requires that an auction be conducted to allow higher offers to be submitted for the company.

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