Embattled MCI claims it is "on track" to emerge from Chapter 11 bankruptcy protection.

Filing its monthly operating report for June with the US Bankruptcy Court for the Southern District of New York, MCI reported that revenues had increased to $2.075 billion compared with $2.034 billion in May.

In a statement, Bob Blakely, MCI's CFO, said: "While the business environment remained highly competitive in June, we continued to make steady and solid progress executing against our plan of reorganisation.

"Our customer loyalty remains strong and we are on track to emerge from Chapter 11," he said.

It's good to be positive.

Earlier this week rival communications group SBC claimed that it is being short-changed by MCI over the routing of long-distance calls.

And the FBI called on people to come forward if they had any information concerning similar allegations that MCI improperly rerouted long-distance calls in the US and Canada in order to avoid paying hundreds of millions of dollars in access fees to other phone companies. ®

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