1,800 face bleak Christmas at Global

SOME 1,800 workers at the UK arm of Global Crossing face an uncertain Christmas as the troubled Bermuda-based telecoms group tries to cobble together a rescue package with its banks. Analysts fear it could buckle under its £7.5bn debt and may file for bankruptcy protection within weeks.

Global Crossing, which paid £1bn for the telecoms arm of Racal Electronics before Racal was taken over by French defence electronics firm Thales last year, operates in 27 countries and over 200 cities.

Like the collapsed Atlantic Telecom and other failed operators in Europe and the US, Global expanded too quickly and overestimated demand.

Late last week rating agencies downgraded its debt to one level above default. Its bonds trade as low as 10% of face value.

Staff here are in a better position than the other 6,200 worldwide as the UK arm has a strong customer base.

Analysts also fear for UK cable firm NTL, which may update investors on its financial position today. Its shares, once $40, tumbled 18% to 58 cents in New York on Monday. Investors will be told that its disposal programme will be delayed, but cost-cutting should improve cash flow. NTL will cut its capital expenditure next year, but restructuring will still be necessary unless it can find an investor.