Global Crossing's Winnick Pledges $25 Million To Company's Retirement Plan

By Agence France-Presse Gary Winnick, chairman of bankrupt telecom firm Global Crossing Ltd., Madison, N.J., said Oct. 1 he would write a $25 million check to the administrator of the company's 401k plan to help offset losses that employees are facing due to the group's January bankruptcy filing. "I make a commitment to every employee of Global Crossing who contributed to the 401k plan," Winnick told lawmakers during a congressional hearing into the company's accounting and business practices. Winnick also challenged CEOs at other firms whose accounting practices also are being probed or have come under suspicion from Congressional and state regulators "to step up and write a check." Lawmakers on the House Energy and Commerce Subcommittee on Oversight and Investigations welcomed his announcement during the hearing. Winnick faced criticism from the panel because he made some $123 million on a May 23, 2001, insider stock sale prior to Global Crossing's bankruptcy filing in January. Copyright Agence France-Presse, 2002