Global Crossing Ltd. New (GLBC, Financial) filed Quarterly Report for the period ended 2010-03-31.
Global Crossing Ltd. New has a market cap of $921 million; its shares were traded at around $15.29 with and P/S ratio of 0.4. GLBC is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Cash flows used in operating activities increased in the three months ended March 31, 2010 compared with the same period in 2009 primarily as a result of higher interest payments and lower IRU and prepaid services receipts in the current period. During the three months ended March 31, 2010, we made $47 million of interest payments compared with $23 million in the same period of 2009. During the three months ended March 31, 2010 we received $23 million of cash receipts from the sale of IRUs and prepaid services compared with $32 million in the same period of 2009.
During the three months ended March 31, 2010, we entered into the following significant contractual commitments: (i) an amendment to an equipment and service agreement that requires payment of $30 million (including value added taxes of approximately $6 million) over the next two years; and (ii) an extension of agreement for supply, installation and maintenance of customer premises equipment that requires a payment of $23 million through 2013.
The current official rate continues to attribute to the bolivar a value that is significantly greater than the value prevailing on the parallel market. Moreover, the conversion of bolivares into foreign currencies is limited by the current exchange control regime. Accordingly, the acquisition of foreign currency by Venezuelan companies to honor foreign debt, pay dividends or otherwise expatriate capital is subject to registration and subject to a process of application and approval by the Comisión de Administración de Divisas (CADIVI) and to the availability of foreign currency within the guidelines set forth by the National Executive Power for the allocation of foreign currency. Such approvals have become less forthcoming over time, resulting in a significant buildup of excess cash in our Venezuelan subsidiary and a significant increase in our exchange rate and exchange control risks. We cannot predict if and when we will obtain CADIVI approval to honor foreign debt, distribute dividends or otherwise expatriate capital using the official Venezuelan exchange rate or the timing of receipt of such approval. At March 31, 2010, we had $19 million registered and subject to approval by CADIVI for the conversion of bolivares into foreign currencies. If we elected, or were required, to convert our Venezuelan subsidiarys cash balances into U.S. Dollars using unofficial, parallel currency-exchange mechanisms that may be available from time to time, material currency exchange losses would likely be incurred in the period of conversion. Additionally, if we further determined that the unofficial parallel rate should be used in the future to measure bolivar-based assets, liabilities and transactions, reported results could be further adversely affected. As of March 31, 2010, approximately $30 million (valued at the fixed official rate) of our cash and cash equivalents were held in Venezuelan bolivares. For the three months ended March 31, 2010, our Venezuelan subsidiary generated approximately $12 million of our consolidated revenue and $8 million of our consolidated OIBDA at the fixed official rate. As of March 31, 2010, our Venezuelan subsidiary had $27 million of net monetary assets of which $1 million and $26 million were denominated in U.S. Dollars and Venezuelan bolivares, respectively. The official exchange rate is 4.30 bolivares to the U.S. Dollar at March 31, 2010. The estimated exchange rate on the parallel market is between 6.90 and 7.00 bolivares to the U.S. Dollar at March 31, 2010. As of March 31, 2010 our Venezuelan subsidiary had $62 million of net assets, of which $24 million may not be transferred to GCL in the form of loans, advances or cash dividends without the consent of a third party (i.e., CADIVI). This amount represents the difference in value of our Venezuelan subsidiarys net assets calculated using the official exchange rate as of March 31, 2010 versus such subsidiarys net assets calculated using our estimate of the parallel market rate as at such date (since no third party consent is required to convert bolivares into U.S. Dollars on the parallel market and to then transfer such dollars to GCL).
The current official rate continues to attribute to the bolivar a value that is significantly greater than the value prevailing on the parallel market. Moreover, the conversion of bolivares into foreign currencies is limited by the current exchange control regime. Accordingly, the acquisition of foreign currency by Venezuelan companies to honor foreign debt, pay dividends or otherwise expatriate capital is subject to registration and subject to a process of application and approval by the Comisión de Administración de Divisas (CADIVI) and to the availability of foreign currency within the guidelines set forth by the National Executive Power for the allocation of foreign currency. Such approvals have become less forthcoming over time, resulting in a significant buildup of excess cash in our Venezuelan subsidiary and a significant increase in our exchange rate and exchange control risks. We cannot predict if and when we will obtain CADIVI approval to honor foreign debt, distribute dividends or otherwise expatriate capital using the official Venezuelan exchange rate or the timing of receipt of such approval. As of March 31, 2010, approximately $30 million (valued at the fixed official rate) of our cash and cash equivalents were held in Venezuelan bolivares. For the three months ended March 31, 2010, our Venezuelan subsidiary generated approximately $12 million of our consolidated revenue and $8 million of our consolidated
OIBDA at the fixed official rate. As of March 31, 2010, our Venezuelan subsidiary had $27 million of net monetary assets of which $1 million and $26 million were denominated in U.S. dollars and Venezuelan bolivares, respectively. If we elected, or were required, to convert our Venezuelan subsidiarys cash balances into U.S. dollars using unofficial, parallel currency-exchange mechanisms that may be available from time to time, material currency exchange losses would likely be incurred in the period of conversion. Additionally, if we further determined that the unofficial parallel rate should be used in the future to measure bolivar-based assets, liabilities and transactions, reported results could be further adversely affected.
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Global Crossing Ltd. New has a market cap of $921 million; its shares were traded at around $15.29 with and P/S ratio of 0.4. GLBC is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
At March 31, 2010, we had $1.453 billion of indebtedness outstanding (including long and short term debt and capital lease obligations), consisting of $426 million of GCUK Notes ($424 million aggregate principal plus $2 million of net unamortized premium), $132 million of 5% Convertible Notes ($144 million aggregate principal less $12 million of unamortized discount), $735 million of 12% Senior Secured Notes ($750 million aggregate principal less $15 million of unamortized discount), $134 million of capital lease obligations and $26 million of other debt.Cash flows used in operating activities increased in the three months ended March 31, 2010 compared with the same period in 2009 primarily as a result of higher interest payments and lower IRU and prepaid services receipts in the current period. During the three months ended March 31, 2010, we made $47 million of interest payments compared with $23 million in the same period of 2009. During the three months ended March 31, 2010 we received $23 million of cash receipts from the sale of IRUs and prepaid services compared with $32 million in the same period of 2009.
During the three months ended March 31, 2010, we entered into the following significant contractual commitments: (i) an amendment to an equipment and service agreement that requires payment of $30 million (including value added taxes of approximately $6 million) over the next two years; and (ii) an extension of agreement for supply, installation and maintenance of customer premises equipment that requires a payment of $23 million through 2013.
The current official rate continues to attribute to the bolivar a value that is significantly greater than the value prevailing on the parallel market. Moreover, the conversion of bolivares into foreign currencies is limited by the current exchange control regime. Accordingly, the acquisition of foreign currency by Venezuelan companies to honor foreign debt, pay dividends or otherwise expatriate capital is subject to registration and subject to a process of application and approval by the Comisión de Administración de Divisas (CADIVI) and to the availability of foreign currency within the guidelines set forth by the National Executive Power for the allocation of foreign currency. Such approvals have become less forthcoming over time, resulting in a significant buildup of excess cash in our Venezuelan subsidiary and a significant increase in our exchange rate and exchange control risks. We cannot predict if and when we will obtain CADIVI approval to honor foreign debt, distribute dividends or otherwise expatriate capital using the official Venezuelan exchange rate or the timing of receipt of such approval. At March 31, 2010, we had $19 million registered and subject to approval by CADIVI for the conversion of bolivares into foreign currencies. If we elected, or were required, to convert our Venezuelan subsidiarys cash balances into U.S. Dollars using unofficial, parallel currency-exchange mechanisms that may be available from time to time, material currency exchange losses would likely be incurred in the period of conversion. Additionally, if we further determined that the unofficial parallel rate should be used in the future to measure bolivar-based assets, liabilities and transactions, reported results could be further adversely affected. As of March 31, 2010, approximately $30 million (valued at the fixed official rate) of our cash and cash equivalents were held in Venezuelan bolivares. For the three months ended March 31, 2010, our Venezuelan subsidiary generated approximately $12 million of our consolidated revenue and $8 million of our consolidated OIBDA at the fixed official rate. As of March 31, 2010, our Venezuelan subsidiary had $27 million of net monetary assets of which $1 million and $26 million were denominated in U.S. Dollars and Venezuelan bolivares, respectively. The official exchange rate is 4.30 bolivares to the U.S. Dollar at March 31, 2010. The estimated exchange rate on the parallel market is between 6.90 and 7.00 bolivares to the U.S. Dollar at March 31, 2010. As of March 31, 2010 our Venezuelan subsidiary had $62 million of net assets, of which $24 million may not be transferred to GCL in the form of loans, advances or cash dividends without the consent of a third party (i.e., CADIVI). This amount represents the difference in value of our Venezuelan subsidiarys net assets calculated using the official exchange rate as of March 31, 2010 versus such subsidiarys net assets calculated using our estimate of the parallel market rate as at such date (since no third party consent is required to convert bolivares into U.S. Dollars on the parallel market and to then transfer such dollars to GCL).
The current official rate continues to attribute to the bolivar a value that is significantly greater than the value prevailing on the parallel market. Moreover, the conversion of bolivares into foreign currencies is limited by the current exchange control regime. Accordingly, the acquisition of foreign currency by Venezuelan companies to honor foreign debt, pay dividends or otherwise expatriate capital is subject to registration and subject to a process of application and approval by the Comisión de Administración de Divisas (CADIVI) and to the availability of foreign currency within the guidelines set forth by the National Executive Power for the allocation of foreign currency. Such approvals have become less forthcoming over time, resulting in a significant buildup of excess cash in our Venezuelan subsidiary and a significant increase in our exchange rate and exchange control risks. We cannot predict if and when we will obtain CADIVI approval to honor foreign debt, distribute dividends or otherwise expatriate capital using the official Venezuelan exchange rate or the timing of receipt of such approval. As of March 31, 2010, approximately $30 million (valued at the fixed official rate) of our cash and cash equivalents were held in Venezuelan bolivares. For the three months ended March 31, 2010, our Venezuelan subsidiary generated approximately $12 million of our consolidated revenue and $8 million of our consolidated
OIBDA at the fixed official rate. As of March 31, 2010, our Venezuelan subsidiary had $27 million of net monetary assets of which $1 million and $26 million were denominated in U.S. dollars and Venezuelan bolivares, respectively. If we elected, or were required, to convert our Venezuelan subsidiarys cash balances into U.S. dollars using unofficial, parallel currency-exchange mechanisms that may be available from time to time, material currency exchange losses would likely be incurred in the period of conversion. Additionally, if we further determined that the unofficial parallel rate should be used in the future to measure bolivar-based assets, liabilities and transactions, reported results could be further adversely affected.
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