Global Crossing
Global Crossing.
A brief history/outline.
In 2002, a huge corporation filed for Chapter 11 bankruptcy, despite announcing continual huge company growth the prior year. The company, who was audited by Arthur Anderson, is in the process of denying accounting irregularities. The company fat cats or executives have made a fortune despite the recent bankruptcy and the invested employees/shareholders have suffered major financial losses. Who is the company?
You would not be alone in immediately thinking of Enron and the scandal that involved Key Lay, also in 2002. However, the correct answer would be Global Crossing, a 5 year old company founded by Gary Winnick in 1997.
The Rise of Global Crossing.
As mentioned in the introduction of this paper, from the outside facts of the downfall of Global Crossing, you could confuse the case involving Enron with Global Crossing, but why?
At their peaks both Lay and Winnick were apart of corporations who were the bar setters in their respective industries. They used their millions for their own lavish lifestyles, for charities and for infamous investing in political campaigns, only to see their nest eggs fall out of the tree quicker than you can say 'Houston, we have a problem.'
We all know the rise and fall story of Enron, but little media spotlight has been put onto the lesser known rise and fall of Global Crossing, so I present to you, my paper.
The year is 1997 and furniture salesman Gary Winnick, a former Drexel Burnham employee, has just been offered a project by AT&T to construct and maintain a new undersea cable that shall link the U.S and Europe more than ever. The catch being that Winnick had to raise $750 million by him. AT&T would construct the cable and become a client to Winnick. Such a task would faze more than the average man but Winnick came up with the $750 million in just 90 days, $15 million financed by him and so Global Crossing was born.
We fast forward two years to 1999. In between the years of
A brief history/outline.
In 2002, a huge corporation filed for Chapter 11 bankruptcy, despite announcing continual huge company growth the prior year. The company, who was audited by Arthur Anderson, is in the process of denying accounting irregularities. The company fat cats or executives have made a fortune despite the recent bankruptcy and the invested employees/shareholders have suffered major financial losses. Who is the company?
You would not be alone in immediately thinking of Enron and the scandal that involved Key Lay, also in 2002. However, the correct answer would be Global Crossing, a 5 year old company founded by Gary Winnick in 1997.
The Rise of Global Crossing.
As mentioned in the introduction of this paper, from the outside facts of the downfall of Global Crossing, you could confuse the case involving Enron with Global Crossing, but why?
At their peaks both Lay and Winnick were apart of corporations who were the bar setters in their respective industries. They used their millions for their own lavish lifestyles, for charities and for infamous investing in political campaigns, only to see their nest eggs fall out of the tree quicker than you can say 'Houston, we have a problem.'
We all know the rise and fall story of Enron, but little media spotlight has been put onto the lesser known rise and fall of Global Crossing, so I present to you, my paper.
The year is 1997 and furniture salesman Gary Winnick, a former Drexel Burnham employee, has just been offered a project by AT&T to construct and maintain a new undersea cable that shall link the U.S and Europe more than ever. The catch being that Winnick had to raise $750 million by him. AT&T would construct the cable and become a client to Winnick. Such a task would faze more than the average man but Winnick came up with the $750 million in just 90 days, $15 million financed by him and so Global Crossing was born.
We fast forward two years to 1999. In between the years of