Bermuda-based Global Crossing this week announced it is, until further notice, suspending dividend payments for its preferred shares.

The telecommunications company said the stop on dividend payments, applies to outstanding shares of its 6 percent cumulative convertible preferred stock; its 6 percent cumulative convertible preferred stock, series B; its seven percent cumulative convertible preferred stock; and its 6 percent percent cumulative convertible preferred stock.

The company said it is taking this action, which is reported to be permitted under the terms of the Preferred Stock, to conserve cash.

Pursuant to the terms of the Preferred Stock, the unpaid dividends will continue to accrue, but will not earn interest.

Global Crossing provides telecommunications solutions over an integrated global IP-based network, which reaches 27 countries and more than 200 major cities around the globe.

But, the company has been plagued this year with financial woes.

And this week, the Financial Times reported that Global Crossing has set up discussions with bankers for the coming week in order to relax debt covenants that the company is in danger of breaching.

A breach of the covenants could force a bankruptcy filing, despite a cash balance of about $2 billion, and would prevent the raising of $2 billion from Hong Kong billionaire Li Ka-shing and Singapore Telecom, which Global Crossing hopes to do after an agreement is reached with its bankers.

Also, FT said Gary Winnick, Global Crossing founder and former junk bond salesman with Drexel Burnham Lambert, is one of several investors ready to put more money into the company. Global Crossing shares ended down ten cents to 65 cents, on Friday.

The company, which is listed on the New York Stock Exchange, was trading at 61 cents on Monday, in contrast to its 52 week high of $25.87. The company's 52 week low is 38 cents.