The bankruptcy proceedings of Global Crossing are becoming far more contentious and potentially disruptive for the company's creditors, customers and business partners than previously expected, bankruptcy experts said over the weekend. The complications, these experts said, could make it more likely that instead of Global Crossing's emerging from bankruptcy as a viable company, or being acquired, the proceedings could lead to perhaps the least desirable outcome for creditors: a liquidation of the company, with its assets auctioned to the highest bidders. ... (According to interviews in the latest issue of the Cook Report, the entire telecom sector is ready to collapse in on itself, with the next mega-bankruptcies coming from the local telcos. It is a fairly technical argument with lots of data points for support, so it's somewhat difficult to judge its merits quickly. But even cast in the best light, it doesn't look good ...) |
