On this day in 2002, the world of telecommunications was rocked when the telecommunications company Global Crossing filed for bankruptcy. The company had been founded in 1997 and quickly rose to become one of the most significant players in the industry, connecting 200 countries with fiber optic networks.
What else was going on in 2002 it was a year of drastic changes in the business world, political scene, and the economy. Kmart’s filing for bankruptcy showed just how vulnerable businesses could be in a weak economy, while Carter’s Nobel Peace Prize highlighted the importance of prioritizing peace and diplomacy in international relations. Unfortunately, the average median U.S. income of $42,409 also indicated that many people were struggling to make ends meet.
At its peak, Global Crossing was valued at over $50 billion and employed thousands of people around the world. However, the company’s success was short-lived as a combination of factors caused its demise. These included the bursting of the dot-com bubble, the September 11th terrorist attacks, and the passage of the Telecommunications Act of 1996.
Global Crossing was also harshly criticized for its accounting practices and the use of off-balance sheet transactions. These practices allowed the company to manipulate its income and debt levels, leading to an artificially inflated stock price. The result was that by 2002, the company was unable to keep up with its debt payments, and it filed for Chapter 11 bankruptcy protection.
Since then, Global Crossing has undergone a lengthy restructuring process and emerged from bankruptcy in 2004. It has since become a leader in providing services to some of the world’s largest telecommunications companies. Despite its rocky past, Global Crossing has proven to be a survivor in a highly competitive industry and is now a major player in the telecommunications world……..
*What are your thoughts on this event? What are your thoughts on how it affects society’s life today?