In June 2001, Global Crossing completed its core network, spanning four continents, 27 countries, and 200 major cities, and on June 29 it completed the sale of its local telephone-company business. Casey's confidence in the company's strength seemed to sustain that of investors, but third-quarter filings for 2001 were considered disappointing, and Global Crossing announced plans to dispose of Global Marine.
Global Crossing's stock price had fallen to $5 by November 2001, and in January 2002 the company filed for Chapter 11 bankruptcy protection. Its assets were ultimately sold to Asia Netcom, a subsidiary of China Netcom. At the same time, Global Crossing filed a letter of intent to sell 79% of the company to a joint venture between Hong Kong-based Hutchison Whampoa and Singapore Technologies Telemedia (ST Telemedia). The bankruptcy filing listed total assets of $22.4 billion and debts of $12.4 billion. Ranked by assets, this is the seventh largest filing in American history.[citation needed]
Global Crossing also gained significant publicity through their bankruptcy process as a result of the behavior of the firm's managers. Thousands of laid-off employees never received their severance payments (as Global Crossing's bankruptcy eventually rendered them unable to make the payments) and many workers' retirement plans became worthless after the plunge of Global Crossing stock. However, while these facts may in and of themselves be the unfortunate consequences of bankruptcy, the fate of the firm's executives tells a different story: the company moved up its last pay date so managers could collect their final paychecks before the January 28th declaration of bankruptcy, while laid-off workers' severance checks had already ceased to arrive. Moreover, while regular employees' pension plans quickly deteriorated alongside Global Crossing's crashing stock price, executives were granted special permission to receive their pension payments in one lump sum—that is, avoiding the negative effects of the fall in stock price altogether, and cashing out handsomely.[9]
On January 28, 2002, Global Crossing announced that it had signed a letter of intent with Hutchison Whampoa and ST Telemedia for a cash investment in a joint majority stake in the company's equity in connection with a restructuring of the company's balance sheet. In April 2003, ST Telemedia that announced it would assume the rights and obligations of Hutchison Whampoa to invest in Global Crossing, increasing its original investment of 61.5% ownership interest in the reorganized Global Crossing