Global Crossing

About Global Crossing

Global Crossing filed for bankruptcy on January 28, 2002, the fourth largest bankruptcy in US history at the time with 22.4 billion in assets. Global Crossing had built a global fiber optic network during the telecom boom. The company used swap transactions to inflate revenue, trading capacity with other carriers. CEO Gary Winnick sold 734 million in stock before the collapse. The SEC investigated the capacity swaps. Winnick was never charged criminally. The bankruptcy destroyed 54 billion in market value. Three former executives pleaded guilty to securities fraud. Global Crossing emerged from bankruptcy in 2003. The company was eventually acquired by Level 3 Communications. The Global Crossing collapse was part of the telecom industry devastation following the dot-com bust.