WorldCom Gets Nasdaq delisting notice
WorldCom said today it could be delisted from the Nasdaq market on July 5th and that it had received notice from some of its lenders that it has defaulted and that they could demand immediate repayment.
WorldCom's lenders for its $2.65 billion and $1.6 billion senior unsecured credit facilities have told the company that "events of default had occurred," WorldCom said in a statement, adding that such a move was expected.
Lenders who hold 51 per cent of the loans for the $2.65 billion facility could vote to speed the date of repayment, which could require the funds to be repaid immediately, WorldCom said.
The company also said, as expected, that it has received a termination notice for a $1.5 billion program that secures accounts receivables and that it will use collections on the accounts to pay the $1.2 billion outstanding.
Nonetheless, the company, which is reeling from a $3.85 billion accounting scandal in which it improperly booked expenses, said it will pay its MCI Group dividend for the second quarter on July 15th, as scheduled.