<PAGE>
EXHIBIT 99.4
DRAFT
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New York, December 29, 2000
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GLOBAL CROSSING TAKES 18% STAKE IN TELEMONDE
---------------------------------------------
IN DEBT FOR EQUITY SWAP
-----------------------
Terms also agreed for eliminating a major portion of outstanding Telemonde debt
December 29, 2000: New York, Telemonde Inc (OTCBB: TLMD) today announced the
successful completion of negotiations with Global Crossing Ltd. (NYSE: GX) for
the elimination of a major portion of its outstanding debt relating to the 1998
purchase of transatlantic fiber-optic capacity by Telemonde Bandwidth (Bermuda)
Limited. The Company has today filed a Form 8-K with the SEC concerning the
conclusion of these negotiations.
The significant features of the re-worked agreement include:
. Global Crossing has released Telemonde from an unfulfilled obligation to
purchase $42.9 Million of transatlantic capacity under the 1998 Agreement.
. Global Crossing has received equity in Telemonde equating to 18% of the
Company's outstanding Common Stock.
. Both parties have agreed a rescheduling of the sums owed for capacity already
activated plus related services ($11.9 Million) to be paid over a 2-year
period commencing on 14th December 2000. On completion of the deal, Telemonde
met its first payment obligation of $1.4 Million.
. Telemonde has entered into an $8 Million Purchase Agreement with Global
Crossing. The commitment allows Telemonde to purchase any product or
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service within the Global Crossing portfolio, at prevailing market rates,
over the next 5 years.
The deal reduces, by approximately 40%, Telemonde's Total Current Liabilities
which, as of 30th September 2000, stood at $105.5 Million (as reported in
Telemonde's Form 10-Q filed with the SEC on 14th November 2000) to $62.6 Million
(as per the Pro-forma Balance Sheet attached below). A total of $17.4 Million is
credited to the Profit & Loss account (after inventory write-offs) compared with
the published cumulative loss for the year to 30th September 2000 of $18
Million.
Global Crossing is a key infrastructure supplier to Telemonde, providing
principally transatlantic capacity and Operations and Maintenance services used
by the Company to supply integrated network solutions to Telecommunications,
Internet and multi-media companies around the world.
Adam Bishop, Chief Executive Officer and President of Telemonde said, "We are
naturally pleased to have concluded these negotiations and to have been able to
build on the existing strong relationship we have with Global Crossing. The
completion of this deal brings to an end the problems we faced with this
supplier, through the lock-in of capacity commitments signed in 1998 and now
allows us to fulfil customer orders and our own network roll-out plans, through
the procurement of a wide range of quality services, at today's much lower
prices".
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TELEMONDE INC
Pro-forma Unaudited Consolidated Balance Sheet
as of 30 September 2000
(US dollars expressed in millions)
<TABLE>
<CAPTION>
As Global Pro Forma
reported Crossing Balance Sheet
in 10Q Agreement
$m $m $m
<S> <C> <C> <C>
Assets
Cash 2.3 2.3
Trade accounts receivable 8.1 8.1
Inventories 21.5 (b) -
(21.5)
Prepaid expenses 9.7 9.7
------- -------- -------
Total current assets 41.6 (21.5) 20.1
Property, plant and equipment 18.6 18.6
Intangible assets 24.6 24.6
------- -------- -------
Total assets 84.8 (21.5) 63.3
======= ======== =======
Liabilities
Accounts payable 78.6 (a) 37.8
(40.8)
Accrued expenses 13.9 (a) 11.8
(2.1)
Deferred income 1.3 1.3
Short term notes 11.7 11.7
------- -------- ------
Total current liabilities 105.5 (42.9) 62.6
======= ======== ======
Stockholders equity
Capital stock 0.1 0.1
Retained profit (90.9) (a) (73.5)
38.9
(b)
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C> <C>
(21.5)
Additional paid in capital 70.0 (a) 74.0
4.0
Minority interests 0.1 0.1
------- -------- ------
Total stockholders deficit (20.7) 21.4 0.7
======= ======== ======
Total liabilities and stockholders equity 84.8 (21.5) 63.3
======= ======== ======
</TABLE>
(a) Debt of $42.9m satisfied by issue of share capital with market value of
$4.0m
(a) Write off of $21.5m inventory element of bandwidth liability to Global
Crossing
(b) The credit to profit for the year is $17.4m compared with a cumulative loss
for the year at 30 September 2000 of $18.0m
Note: This pro-forma assumes the Global Crossing re-negotiations were concluded
prior to 30 September 2000
About Telemonde Inc.:
Telemonde Inc. is a global communications company developing and operating high
value international voice, data and Internet services through its network of IP,
voice and data infrastructure. Telemonde's operating subsidiaries include:
. telemonde.net sa, (www.telemonde.net): providing a combined package of
global Internet connectivity and content to broadband local access
providers thereby enhancing the revenue and growth opportunities in
broadband content provision, video-on-demand, e-commerce and advertising.
. EquiTel Communications Ltd.: supplying telecommunications route management
and intelligent network services to emerging markets.
. Telemonde Networks Ltd.: delivering carrier-grade capacity, instant network
access and managed routing services from anywhere to anywhere.
About Global Crossing
Global Crossing Ltd. (NYSE: GX) is building and offering services over the
world's most extensive global IP-based fiber optic network, which will have more
than 101,000 route miles, serving five continents, 27 countries and more than
200 major cities. Global Crossing's operations are headquartered in Hamilton,
Bermuda, with principal offices in Los Angeles, California; London, England;
Amsterdam, The Netherlands; Madison, New Jersey; Rochester, New York; Dublin,
Ireland; and Miami, Florida.
Visit Global Crossing at www.globalcrossing.com on the Web.
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Forward looking statements:
Certain statements in this news release may constitute "forward-looking"
statements within the meaning of section 21E of the Securities Exchange Act of
1934. Such forward-looking statements involve risks, uncertainties, and other
factors, which may cause the actual results, performance, or achievement
expressed or implied by such forward-looking statements to differ.
The Company's Form 10-K for the fiscal year ended December 31, 1999 details many
of the risks and uncertainties associated with these forward-looking statements.
Contact:
Telemonde Inc., New York
Investor Communications Co.
800/419-5211 and 800/419-5311
http://www.iccinfo.com
or StockIR at
http://www.stockir.com
Global Crossing Ltd.
Press:
Tom Goff, + 1 310 385 5231
[email protected]
Kim Polan, + 1 212 687 8080
[email protected]
Analysts / Investors:
Ken Simril, +1 310 385 5200
[email protected]
