Asia Global Crossing's Bondholders Question Company's Failure to Draw $400 Million of Available Funds, Announces Elliott Management Corporation.Business Editors NEW YORK--(BUSINESS WIRE)--Nov. 12, 2001 Elliott Associates, L.P. and Elliott International, L.P., beneficial holders (the "Noteholders") of Asia Global Crossing Limited's ("AGC AGC Automatic Gain Control AGC Automotive Glass Cartridge (fuse) AGC Associated General Contractors AGC Associated General Contractors of America AGC Atypical Glandular Cells AGC Attorney-General's Chambers ") $408,000,000 13.375% Senior Notes due 2010, have raised with AGC's Board of Directors the issue of its continuing failure to draw down on a $400,000,000 Subordinated Loan In the field of finance, a subordinated loan is a type of loan which ranks after other debts should a company fall into receivership or be closed. It is also known as subordinated debt, or as junior debt. Note Facility which Global Crossing Limited ("GC") has made available to AGC on commercial terms favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. to AGC. "We are of the opinion that the rapidly deteriorating financial position of GC makes it imperative for AGC to immediately draw down in full on the Facility so as to negate ne·gate tr.v. ne·gat·ed, ne·gat·ing, ne·gates 1. To make ineffective or invalid; nullify. 2. To rule out; deny. See Synonyms at deny. 3. any risk that these funds, which it requires for the fulfilment of its business plan, will not be available at a future time," stated Norbert Lou, a Portfolio Manager at Elliott Associates, L.P. "Furthermore, we believe that the injection of cash into AGC will assist in restoring confidence in the company and give AGC the flexibility to improve its capital structure." This statement follows repeated attempts made by the Noteholders to set out their concerns regarding the Board's failure to draw on the Facility as a breach of the Board's duties towards the company, its shareholders and creditors. The same Noteholders opposed AGC's recently proposed merger with GC. The proposed transaction has now been terminated. All interested parties should contact: Norbert Lou Elliott Associates, L.P. 712 Fifth Avenue New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of New York 10019 Telephone: 212/506-2999 Facsimile: 212/974-2092 E- Mail: nlou@elliott-assoc.com Elliott Associates, L.P. is represented in this matter by Andrew Wilkinson Andrew Wilkinson (1697 – 1784) was a British politician and racehorse breeder. A resident of Boroughbridge, he was returned in 1735 as Member of Parliament for Aldborough, succeeding his late father-in-law William Jessop. of Cadwalader, Wickersham & Taft. |
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