Re Global Crossing Ltd

• Jurisdiction: Bermuda
• Judgment Date: 08 October 2002
• Date: 08 October 2002
• Docket Number: Civil Jurisdiction 2002 No. 28
• Court: Supreme Court (Bermuda)

In the Supreme Court of Bermuda

Ward, CJ

Civil Jurisdiction 2002 No. 28

In the Matter of Global Crossing LTD and

In the Matter of Global Crossing Holdings LTD and

In the Matter of Atlantic Crossing LTD and

In the Matter of Atlantic Crossing Holdings LTD and

In the Matter of Mid-Atlantic Crossing Holdings LTD and

In the Matter of Global Crossing International LTD and

In the Matter of Global Crossing Network Center LTD and

In the Matter of Mid-Atlantic Crossing LTD and

In the Matter of Pan American Crossing Holdings LTD and

In the Matter of South America Crossing LTD and

In the Matter of Pan American Crossing LTD and

In the Matter of Atlantic Crossing LTD and

In the Matter of the Companies Act 1981

Plaintiffs

Mr. Woloniecki & Ms. Anderson for the Joint Provisional Liquidators

Mr. Hargun for the Senior Secured Lenders

Mr. J. Cooper for the Unsecured Creditors

Shearing v LoaderUNK [1991] BCLC 764

ICO Global Communications Holdings Ltd 1999 Civil Jur. No. 288

Fruit of the Loom Ltd [Cayman Islands]

Enron LNG Shipping Co [Cayman Islands]

Re A V Sorge & Co LtdUNK [1986] BCLC 490

Companies Act 1981, S. 170(2), 232

Companies (Winding Up) Rules 1982, r 140

Application by the Joint Provisional Liquidators for order — Payment of invoices for remuneration of liquidators

RULING

This is an application by the Joint Provisional Liquidators (the JPLs) for an order declaring that paragraphs 1(i) and / or 7 of the Orders dated 28^th January 2002 appointing the JPLs to each of the Bermudian debtors entitle the JPLs to render and pay invoices out of the assets of the Bermudian debtors in respect of their own remuneration at their usual and customary rates and all costs, charges and expenses of their attorneys and all other agents, managers, accountants and other persons that the JPLs may employ notwithstanding that such remuneration, costs, charges and / or expenses may have been incurred prior to 28^th January 2002 ……. or alternatively an order that the JPLs may render and pay the said invoices notwithstanding that they were incurred prior to 28^th January 2002.

On 28^th January 2002 I made an Order appointing Philip Wallace and Jane Moriarty of KPMG in England and Malcolm Butterfield of KPMG in Bermuda as JPLs of Global Crossing Holdings Ltd. with special powers. The Order recited that the Petitioner had filed a petition under chapter 11 of title 11 of the US Code (the Bankruptcy Code) in the US Bankruptcy Court for the Southern District of New York in the United States of America and it empowered the JPLs to enter a protocol or agreement for the coordination of the Bermuda proceedings, the chapter 11 Case and any other like proceedings for the restructuring and / or reorganization of the Petitioner and other companies within the Global Crossing Group.

The Order provided for the payment of certain pre-petition expenses namely pre-petition payroll, pre-petition...