WorldCom To Become MCI This WeekApr 19, 2004 | UPI
WorldCom lawyers and accountants dove into the final paperwork Monday needed to emerge from bankruptcy and become, officially, MCI of Ashburn, Va.
The former Clinton, Miss., telecommunications giant, which lost $64.5 billion from 2000 to 2001, expects to wire $500 million to the Securities and Exchange Commission Monday as partial payment of a fraud settlement, the Washington Post reported.
Another $250 million in new MCI stock will complete its payment to the SEC.
Once the company's lawyers and accountants finish the 2003 financial statement, expected this week, it will officially become MCI Inc.
Under the soon-to-be-completed reorganization, bond holders will receive an average of 36 cents on the dollar, in newly issued MCI stock.
The newly reorganized company will have $6 billion in debt rather than $41 billion and a workforce of 50,000 rather than 70,000.
MCI faces immediate challenges, with 2003 revenues of $32 billion expected to fall to $22 billion for 2004 and a bill from lawyers and accountants of $800 million.