PrimeCo was acquired in June of last year by Clarity Partners, a firm led by David Lee, a former Global Crossing director. Besides J.P. Morgan Partners and Pacific Capital, other participants in Clarity were Trimaran Capital Partners, an investment firm formed by several former Global Crossing directors, and two other investment firms without apparent links to Global Crossing, the Green Leaf Ridge Co of Chicago and Tregan Partners of Dallas.
In a related development, bank lenders to Global Crossing asked Hutchison Whampoa to modify bidding procedures. The changes would include an extension of time to find an alternative transaction and a cut in the US$40 million breakup fee. The banks was to seek the support of other creditors on Wednesday.
Global Crossing said late Tuesday night that it had revenue of about US$804 million in the fourth quarter and that last year's loss would include restructuring charges of US$2 billion to write down its investments. The company said it had about US$1.5 billion in cash, including US$492 million in its Asian subsidiaries accounts and US$327 million from the sale of its IPC unit. It is unclear whether it will have access to this money.
The company also said that at least one director, Mark Attanasio, had resigned and that it was recruiting outside directors. The company added that its accounting practices were being investigated by the US attorney for the Central District of California and the Securities and Exchange Commission.
Separately, Asia Global Crossing, the company's largest subsidiary, said Tuesday that preliminary revenue climbed 60 percent in the last quarter of last year, to US$46.7 million from the period a year earlier; for the full year, revenue declined 27 percent, to US$121.5 million. The company said it expected a loss for the quarter and the year but did not provide details.
Asia Global Crossing, which provides communications services in Asia, said its final results might change because of an investigation of its parent's accounting practices by the Securities and Exchange Commission and the FBI. Asia Global Crossing also said Lazard, its financial adviser, was looking for ways for it to restructure and obtain financing.
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