Feeds

Chapter 11 looms For WorldCom

Bonded labour

  • alert
  • submit to reddit

High performance access to file storage

ComputerWire: IT Industry Intelligence

WorldCom Inc is trying to bash out a massive debt-for-equity swap with its bondholders, as the company battles to survive. Wall Street Journal reported sources close to the talks as saying Friday that holders of $26bn of bonds are talking to WorldCom management over the potential deal, which would be executed under the protection of Chapter 11.

The carrier, which revealed two weeks ago it inaccurately booked $3.8bn over the last five quarters, owes its creditors $32.8bn, the majority of which is due its bondholders. The company has up to $5.75bn in debt repayments due in the next year, reports said.

Any swap of debt for equity would allow the company to function as a regular business, unburdened by the huge debt, but would likely leave WorldCom common shareholders with next to nothing. The company says it is still talking to its banks, which it owes some of the debt, to figure out additional funding.

Having learned lessons from the Enron Corp scandal, regulators are currently all over WorldCom. The beleaguered carrier is currently being investigated by the Securities and Exchange Commission, Congress, and the US Justice Department, over allegations of fraud. The company fired its CFO following the uncovering of the accounting errors.

© ComputerWire

Top three mobile application threats

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Record labels sue Pandora over vintage song royalties
Companies want payout on recordings made before 1972
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Number crunching suggests Yahoo! US is worth less than nothing
China and Japan holdings worth more than entire company
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.