Feeds

WorldCom dives for Chapter 11 cover

No surprises there

  • alert
  • submit to reddit

New hybrid storage solutions

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?

The next step in data security

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Protecting users from Firesheep and other Sidejacking attacks with SSL
Discussing the vulnerabilities inherent in Wi-Fi networks, and how using TLS/SSL for your entire site will assure security.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.