Is Global Crossing Double-Crossing Investors?

Amid accusations of Enron-style bookkeeping, angry shareholders aim to stop the reorganization plan, which they say leaves them with nothing

It sounds like Enron all over again. Global Crossing Holdings, the onetime high-flying telecommunications company now in bankruptcy, has a whistleblower who alleges accounting improprieties. Shareholder suits claim that executives made tens of millions of dollars in profits from stock sales while the alleged hanky-panky went on. Employees were locked out of selling their shares for a four-week period, which ended on Jan. 18. The Securities & Exchange Commission and the FBI are both investigating Global Crossing. And the company allegedly loosened terms on multimillion-dollar loans to former and current executives shortly before going belly up. Global Crossing's auditor? None other than Arthur Andersen. (Global Crossing declined to comment on these issues.)

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