Excerpts: “Global Crossing Explained.”

  • The next CEO was Leo Hindery, another AT&T executive, who had joined the company a few months earlier as head of its webhosting division, GlobalCenter. In March 2000, the month Hindery took over, Global Crossing’s stock had reached a high of $61 per share.
  • A month later, it had fallen to $25, and the company’s filing for an offer of $2.5 billion in common and convertible preference shares was halved. Many of the original investors sold most or all of their holdings for substantial gains.
  • Hindery predicted that the company would attain a positive cash flow by early 2002, but he resigned in October 2000 after seven months with the company and the sale of the GlobalCenter division to Exodus Communications. He was replaced by Thomas Casey, a lawyer who came to Global Crossing from Merrill Lynch, where he was co-head of the global telecom investment banking group.

Source: Global Crossing Explained