Publish date:

Global Crossing to Sell Pacific Unit

The company will sell Pacific Crossing for about $63 million.

Global Crossing

said on Thursday it will sell its Pacific Crossing unit for $63 million, a fraction of what the bankrupt network operator spent to build the business three years ago.

The company obtained bankruptcy court approval to sell the assets to Pivotal Private Equity in a bid to offset a portion of its billions of dollars of debt. The sale is expected to close by the end of this year.

Pacific, which is also under bankruptcy protection, operates a high-speed undersea network between the U.S. and Japan and cost more than $1.35 billion to be completed.

TheStreet Recommends

Global Crossing filed for bankruptcy in January amid a slump in demand for communication capacity worldwide. The company owns the world's largest underwater fiber-optic network.