Struggling network company Global Crossing has admitted that important documents were destroyed at several of its main offices after instructions were sent out not to shred evidence.
According to reports in the New York Times, Global Crossing admitted in discussions with its investors' lawyers that documents had been destroyed at offices in Rochester, Montreal, Toronto and Minneapolis.
Global Crossing filed for Chapter 11 bankruptcy protection in January.
The revelation backs up claims from former employees that they had witnessed documents being shredded after investigators said that they were to probe the firm.
The company admitted at the weekend that "isolated incidences of document disposal in the ordinary course of business" had taken place, but insisted that "none of the documents involved appear to have any relevance to pending litigation or governmental investigations".
The US Securities and Exchange Commission launched its investigation into the company on 4 February. Global Crossing instructed its staff not to shred documents three days later.
Controversy surrounds company founder Gary Winnick who is believed to be trying to prevent the investigations. Winnick allegedly made $730m from Global Crossing deals before the company got into difficulties laid off 7,000 staff.
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