Suitors for bankrupt Bermuda-based telecommunications giant Global Crossing have had the door of opportunity thrown wide open after the company failed to reach an agreement with joint Asian bidders Hutchison Whampoa and Singapore Technologies Telemedia Pte.

Global Crossing confirmed over the weekend that its major creditor constituencies were unable to reach agreement on definitive documentation with Hutchison Whampoa Ltd. and Singapore Technologies Telemedia Pte. Ltd. for an investment in Global Crossing.

The agreement would have resulted in the two companies securing a break-up fee and other bidding protections.

However, the failed agreement has meant Hutchinson Whampoa and Singapore Technologies have forfeited the preferred status of their joint bid.

John Legere, Global Crossing's chief executive officer said: "While we are disappointed that an agreement could not be reached at this time, we look forward to working with Hutchison Whampoa and Singapore Technologies Telemedia as the auction approaches."

In a joint statement on Friday after four months of negotiations, the companies said that while progress was made major differences remained amongst the parties involved.

A Hutchinson Whampoa spokesperson said that the two bidders refused to budge from their original price terms of $750 million for a 79 percent stake in Global Crossing.

Creditors refused saying the offer was too low given that Global Crossing has about $22.4 billion in assets.

Mr. Legere said the company would keep talking with the two Asian investors as well as other parties.

The company is preparing to auction its high speed communications network that connects more than 200 cities in 27 countries.

Bids for Global Crossing's assets are now due on June 20 and the auction is set for July 8.

By walking away from the negotiations, Hutchinson Whampoa - a conglomerate controlled by Hong Kong's richest man Li Ka-shing - and the Singapore-Government owned Singapore Technologies forefitted their chance at a $30 million compensation fee.

Had an agreement been reached, the two Asian companies would automatically have taken home the so-called breakup fee if any outside party came forward to offer Global Crossing's creditors a higher bid.

The two Asian companies are now free to rebid at a lower level if bidding interest in Global Crossing's assets turns out to be lacklustre.

Global Crossing's bankruptcy stemmed from $12.4 billion in debt, stiff competition and a glut of high speed network capacity, and falling prices.

The company remains in business but has closed approximately 200 offices, fired thousands of workers and cut its capital spending plans in an effort to save money.

The company also faces a US federal investigation into whether it improperly conducted asset swaps that bought no value other than to inflate revenue figures.

Global Crossing operates throughout the Americas and Europe, and provides services in Asia through its subsidiary, Asia Global Crossing.

On January 28, 2002, Global Crossing and certain of its affiliates (excluding Asia Global Crossing and its subsidiaries) commenced Chapter 11 cases in the United States Bankruptcy Court for the Southern District of New York and coordinated proceedings in the Supreme Court of Bermuda.