Bankrupt telecoms group Global Crossing has finally reached a deal to sell most of its fibre-optic network to two big Asian investors.

The agreement ends seven months of speculation about the company's future.

Global Crossing's chief executive John Legere said the company was in good shape and he was very happy with the deal.

Hutchison Whampoa and Singapore Technologies Telemedia have agreed to invest $250m (�164m) in return for a 61.5% stake in the business.

UK arm retained

"They're not just investing in the company they're investing in my team and I and in the work we've done getting the company here," said Mr Legere.

Under the deal banks and other creditors will get 38.5% of the company, plus $300m in cash and $200m in new debt notes in the new Global Crossing.

The deal, approved at a bankruptcy hearing in New York, will enable the company to emerge from bankruptcy proceedings.

As part of the agreement, Global Crossing will keep its UK national business, its conferencing division and Global Marine - three businesses which it had previously considered selling.

Investigations

Earlier this year the two Asian groups offered more money for a higher stake in the company.

But that deal fell apart in May because creditors said the $750m offer, for 79% of the business, was too low.

In January, Global Crossing filed for what was then the fourth largest bankruptcy on record.

The company collapsed under the weight of $12.4bn of debt, falling prices and a glut of high-speed capacity network which it could not sell.

Global Crossing faces investigations into its accounting practices by the US Justice Department, the Securities & Exchange Commission and Congress.

It also faces 60 shareholder lawsuits.