The troubled fiber-optic networking company announced last week that it would have to restate last year’s results and review its 2002 results. Apparently, it had understated liabilities for access charges (fees paid to other phone companies for connecting calls) in its 2003 financial results by $50m to $80m.
Global Crossing has named Deloitte & Touche to review its accounting and has been notified by Nasdaq that it was not in compliance with the filing requirements for continued listing.
It now faces delisting unless it can persuade a Nasdaq listing qualifications panel to allow its continued listing, and to give it time to complete its review and return to compliance with Nasdaq filing requirements.
The Bermuda-based carrier intends to request a hearing and in the meantime said its stock will continue to trade on Nasdaq under the symbol GLBCE.
Over the past week, Global Crossing’s shares have lost nearly 70% of their value.
This article is based on material originally published by ComputerWire
