Bermuda-based Global Crossing bankruptcy proceedings started in earnest in the Supreme Court on Friday, but it may take years before the fourth largest bankruptcy in US history is resolved.

In the first hearing of Bermuda petitioners before Chief Justice Austin Ward, which lasted less than five minutes, Appleby Spurling and Kempe head of litigation John Riihiluoma said the petitioners sought an adjournment for six months and requested a date in September for a mention.

Mr. Riihiluoma said the reason for his request was that Global Crossing was currently involved in a restructuring process through proceedings in the US and he had submitted a confidential report from the company's liquidators to Justice Ward, as well as a sworn affidavit from Global Crossing chief financial officer Dan Cohrs in which he outlined the restructuring process.

Appearing for the creditors, Jan Woloniecki had no objection to the adjournment and Justice Ward set the matter down for mention on September 20.

No petitioners or creditors appeared for the hearing.

On January 28, Global Crossing commenced bankruptcy proceedings in the United States Bankruptcy Court for the Southern District of New York and coordinated proceedings in the Supreme Court of Bermuda.

In a statement announcing the Chapter 11 filing, Global Crossing said it had signed a letter of intent with Hutchison Whampoa Limited and Singapore Technologies Telemedia Pte. Ltd. for a $750 million cash investment for a joint majority stake.

The statement also said that under the terms of the proposed investment, which is conditional on - among other things - the confirmation of a plan of reorganisation by the courts before the end of August 2002, creditors would share in a combination of cash, new debt, and new equity in the restructured company.

Global Crossing also announced on Friday a programme offering incentives to employees based in the United States who voluntarily leave the company's payroll as part of an overall expense reduction effort.

The company said that employees who volunteer to leave and are accepted into the programme will receive a cash payment based on their salary grade and length of service, as well as a period of continued benefits.

The company said the total number of people who leave under the programme would be determined by the needs of individual groups within the company and the effect of other expense reduction programs.

Employees who are considered essential to the company's operations will not be accepted into the program. The programme is also closed to certain other employees, such as those who have already submitted resignations, who have already received separation notices or who are contract employees.

Employees will be able to apply for the programme between February 22 and February 27.