In the case of Global Crossing, Li is swooping in at a moment of dire weakness. His proposal is for Hutchison and Singapore Technologies to invest a total of US$750 million for a 79 percent stake -- contingent on writing off the company's US$12.4 billion in debts.
Creditors would receive the remaining 21 percent of equity, in the form of cash and notes, a 90 percent discount on their loans. Other shareholders of Global Crossing would receive nothing.
Given the paltry return, some analysts say they expect other bidders for the company's assets to emerge. Bankruptcy court has given the company until August to put a plan together.
``This is the beginning of a very long transaction,'' Cheung, the Hutchison spokeswoman, said.
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