The high-speed communications network operator Global Crossing Ltd., had been in trouble for some time before it filed for bankruptcy.

The Hamilton, Bermuda-based Global Crossing has also said it will set up an accounting committee and will retain independent counsel and an accounting firm other than Andersen, the company's regular accountants, to review the matter.

The company had been racing to be the first to complete a link of fibre-optic cables around the world, and had been making link-ups through Bermuda to offer high-speed state-of-the art telecommunications around the globe.

But this dream has collapsed and now the FBI is also said to be investigating claims made by former vice president of finance Roy Olofson who has accused Global Crossing of overstating revenue and misreporting costs.

Mr. Olofson claims that Global Crossing engineered "swaps" of capacity on its fibre-optic network for capacity on other carriers' networks as a means of boosting its financial results.

Global Crossing has denied Mr. Olofson's claims and accused him of demanding cash ("multiple millions of dollars") to drop a lawsuit over his departure form the company in September.

The company last week also said the Securities and Exchange Commission had asked the company to turn over certain corporate documents and a letter sent by the employee.

The questions about Global Crossing's accounting practices follow concerns about accounting at energy trading giant Enron Corp. and retailer Kmart Corp.

Global Crossing unveils restructuring plan: Page 27