Executives of bankrupt undersea fibre-optic cable network operator
Global Crossing will are to testify before the Subcommittee on
Oversight and Investigations of the US House of Representatives
Committee on Financial Services this Thursday (March 21).
John Legere, chief executive officer of Global Crossing, and Dan
Cohrs, the company's chief financial officer, have been called to
Congress to take part in a hearing that will "examine the effects
of the Global Crossing bankruptcy on investors, financial markets,
and employees", according to a letter of invitation from committee
chairwoman and New york congresswoman Sue Kelly,.
The hearing is not the only action surrounding the bankruptcy of
Global Crossing that is taking place in Washington.
The House of Representatives Committee on Energy and Commerce,
which is already investigating the accounting of failed energy
trader Enron, is to probe Global Crossing's financial affairs after
news reports claimed that the company many have engaged in similar
accounting practices. Global Crossing used the same auditor as
Enron, Arthur Andersen LLP.
The committee has requested Global Crossing turn over a large
number of documents, including details of indefeasible right of use
contracts for capacity on cables signed since 1998, details of
capacity swap arrangements with other telecommunication carriers,
details of concerns over accounting practices, shares and options
schemes and benefits provided to executives.
The US Securities and Exchange Commission has also launched an
investigation into Global Crossing's accounting.