Feeds

WorldCom dives for Chapter 11 cover

No surprises there

  • alert
  • submit to reddit

Intelligent flash storage arrays

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?

Top 5 reasons to deploy VMware with Tegile

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
The hidden costs of self-signed SSL certificates
Exploring the true TCO for self-signed SSL certificates, including a side-by-side comparison of a self-signed architecture versus working with a third-party SSL vendor.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.