Subject: [NEXTEL-1] Global Crossing Chairman Resigns

From: Marcel <[email-masked]>
Date: Tue, 31 Dec 2002 12:35:45 -0500

December 31, 2002

Global Crossing Chairman Resigns

By SIMON ROMERO

ary Winnick, who made hundreds of millions of dollars selling Global Crossing stock before
its collapse earlier this year,
said yesterday that he was resigning as the company's chairman.

Mr. Winnick's announcement came after two companies, Hutchison Whampoa of Hong Kong and
Singapore Technologies
Telemedia, recently completed their acquisition of Global Crossing's assets for about $250
million or about 1 percent of the
assets' declared value of more than $22.4 billion.

The bankruptcy filing last January wiped out the value of the stakes of shareholders,
including many of Global Crossing's
employees and the retirees of phone companies that it acquired.

Mr. Winnick made more than $730 million from various deals involving Global Crossing stock
before the company filed for
bankruptcy protection.

The bankruptcy filing came after a frenzied attempt by Global Crossing's executives to
bolster financial results by swapping
nearly useless fiber optic capacity with other communications companies.

An oversupply of capacity led to bankruptcy filings by several large telecommunication
companies.

A lawyer for Mr. Winnick, Terry Christensen, said yesterday that Mr. Winnick had not been
forced to resign by Global
Crossing's new owners. A group of Global Crossing's creditors had been pressing for his
removal, according to recent reports.

A spokeswoman for Global Crossing declined to comment on Mr. Winnick's reason for
resigning.

Mr. Christensen said that Mr. Winnick had been planning to step down for some time but had
waited until the sale was
completed.

In a letter to the board of Global Crossing, Mr. Winnick appeared to take credit for
efforts to resurrect the company and
boasted of its potential.

"I deeply regret that so many good people involved with Global Crossing also suffered
significant financial loss," Mr. Winnick
said. "Because of the decision to declare bankruptcy when we did, however, that vision of
a truly complete and global
communications network will be preserved."

Mr. Winnick and other executives came under investigation this year but the Justice
Department indicated last week that it would
not file criminal charges as a result of its inquiry. The Securities and Exchange
Commission has not finished its investigation of
Global Crossing's accounting practices.

Mr. Winnick came under scrutiny earlier this year for his ties to one of the investors
that acquired Global Crossing. Last year,
Mr. Winnick invested in K1 Ventures, an investment firm controlled by the same Singapore
government concern that controls
Singapore Technologies Telemedia.

Mr. Winnick resigned from the board of K1 in February after his stake was made public. He
and executives of K1 said that K1
had no involvement in efforts to acquire Global Crossing. At the time, people who were
following the bankruptcy proceedings
wondered whether Mr. Winnick might benefit at some point if Singapore Technologies
Telemedia succeeded in acquiring Global
Crossing.

Mr. Christensen, Mr. Winnick's lawyer, said yesterday that Mr. Winnick had no financial
ties to Global Crossing. He remains
connected to the company through the recent creation of a $25 million fund to compensate
current and former employees who
lost money investing in the company's retirement plan.

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