WorldCom files reorganisation plan, names CFO

 

Telephone and data services company WorldCom said this morning it aims to emerge from bankruptcy with $3.5 billion to $4.5 billion in debt undera plan giving its creditors control of the reorganised company.

Telephone and data services company WorldCom said this morning it aims to emerge from bankruptcy with $3.5 billion to $4.5 billion in debt undera plan giving its creditors control of the reorganised company.

WorldCom, which last year filed the world's largest bankruptcy case in the wake of an accounting scandal that may top $11 billion, also named Mr Robert Blakely as its new chief financial officer. Blakely, 61, previously served as financialchief at Lyondell Chemical and the former Tenneco Inc.

WorldCom, the No. 2 US long-distance telephone and data services company, said it would dump its tarnished name and adopt MCI, the brand of its residential long-distance telephone business, as its new moniker.

WorldCom, which in its heyday transmitted roughly half of the world's Internet traffic, buckled under $41 billion in debt and a growing accounting scandal when it filed for bankruptcy in July 2002.

Since then, WorldCom, Enron Corp. and Adelphia Communications Corp. have become synonyms for fraud and corporate malfeasance.