Telecommunications network builder Global Crossing Ltd has filed for bankruptcy protection.
The New York Stock Exchange immediately halted trading in the shares of the Bermuda-based company.
In terms of assets, the $22.4 billion insolvency is the fourth largest public company bankruptcy in US history.
The company had faltered under debt incurred in building its high-speed telecom network that linked 200 cities in nearly 30 countries. Hong Kong-based holding company Hutchison Whampoa and telecom provider Singapore Technologies Telemedia will invest $750 million in the reorganized company in exchange for a majority stake. Existing shareholders will not get a stake in the new company. Creditors will get a combination of cash, new debt, and new equity.
