Feeds

WorldCom dives for Chapter 11 cover

No surprises there

  • alert
  • submit to reddit

Top three mobile application threats

Worldcom - which has rocked the corporate world with its $3.85 billion accounting scandal - has filed for Chapter 11 bankruptcy protection in the US.

The move gives WorldCom breathing space for the telcoms giant to carry on trading under protection from its creditors while it tries to sort out its self-inflicted financial mess.

In a statement issued yesterday WorldCom said it and most of its US subsidiaries filed for Chapter 11 Bankruptcy protection. WorldCom's non-US subsidiaries are not included in the filing and will continue to operate normally.

WorldCom also confirmed it had secured $2bn - on top of a $750m loan - to help finance the operation during its bankruptcy protection.

WorldCom plans to use the cash to continue operating its business while drawing up a new strategic plan for the company. Oh, and it also wants to use the cash to restructure its finances, reduce its debt burden and strengthen its balance sheet.

Said John Sidgmore, WorldCom's president and chief exec: "We will use this time under reorganisation to regain our financial health and focus, while operating with the highest integrity.

"Our total focus will be to take this company forward in the best way possible and with the highest ethics so that WorldCom can continue to be an important part of our economy," said Sidgmore.

If successful WorldCom plans to slip out from behind the protective cover of Chapter 11 over the next nine to 12 months. ®

Related Story

WorldCom to face bankruptcy on Monday?

3 Big data security analytics techniques

More from The Register

next story
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
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?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
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

Designing a defence for mobile apps
In this whitepaper learn the various considerations for defending mobile applications; from the mobile application architecture itself to the myriad testing technologies needed to properly assess mobile applications 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.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.