Excerpts: “Hindery: Global Crossing Stiffed Me on Rent, Pay”

  • Leo Hindery says he still has a gripe with his old company, Global Crossing – that it owes him rent for his Waldorf-Astoria apartment and a year’s back pay. Hindery headed the telecommunications company for two years, up to its peak in 2000 and left before it collapsed into bankruptcy.
  • His lawyers put in a claim on Friday to bankruptcy court here, where Global Crossing faces more than $12.4 billion in claims. Among the bills owed are Hindery’s rent tab for a $22,000-a-month studio apartment in the luxurious Waldorf Towers, and $708,333.39 in back pay.
  • Hindery, whose primary home is in California, kept a company pad here at the Waldorf. He paid the rent himself for five months, totaling $113,381, and put in for expenses that were never paid.
  • Other residents in the Waldorf Towers apartments, which soar from the 28th floor to the 42nd floor, include the U.S. ambassador to the United Nations. The building offers apartments with up to six bedrooms that include twice-daily maid service, fully equipped kitchens and access to formal dining rooms.
  • Hindery was also promised almost $1 million annually for staying on as the chairman and chief executive of Global Crossing’s Web-hosting unit, GlobalCenter, until it was sold to Exodus Communications – a deal that went through in early 2001 for $6.5 billion.
  • Hindery’s lawyers asked the bankruptcy court to order Global Crossing in two weeks to pay up for rent from Feb. 1, 2002, through June 30, when the lease was terminated. His back pay covers the period of Jan. 30 to Sept. 30, 2002.

Source: New York Post