Global Crossing Closes Beverly Hills Office

Global Crossing Ltd. closed its flagship Beverly Hills office after a bankruptcy judge ruled the firm could break its $400,000-a-month lease at the historic property owned by Global Crossing’s own chairman. Company founder and Chairman Gary Winnick bought the former MCA building in 1998 through his investment firm Pacific Capital Group for $41.5 million and then leased it to Global Crossing through a third firm he managed. The arrangement drew scrutiny after Global Crossing filed the fourth-largest bankruptcy case in U.S. history on Jan. 28.

Meanwhile, Asia Global Crossing’s debt rating was cut to the lowest level by Standard & Poor’s after the fiber-optic network operator missed paying interest on some of its debt.