WorldCom files plan of reorganization, changes brand to MCI

By siliconindia   |   Thursday, 08 May 2003, 19:30 IST
Printer Print Email Email
ASHBURN: WorldCom, Inc. (WCOEQ, MCWEQ) today filed its proposed Plan of Reorganization with the U.S. Bankruptcy Court for the Southern District of New York, delivering on the company's "fast track" Chapter 11 reorganization schedule. Additionally, the company announced the appointment of Robert T. Blakely as its new CFO, a brand name change to MCI, and the relocation of its corporate headquarters to Ashburn, VA. "We committed to file our Plan of Reorganization by April 15 and we delivered," said MCI's Chairman and CEO Michael Capellas. "Today's accomplishments are a tribute to our management team, advisors and major creditor constituencies. It is also an example of the tremendous will-to-win of the MCI employees, who worked with an outrageous sense of urgency." "Our company has demonstrated a new fast and focused attitude and a commitment to emerge from Chapter 11 later this year as a leaner, stronger competitor," said Capellas. "From this day forward, our focus will be on serving our customers, strengthening our core assets, executing on our three-year business plan, and solidifying our position as the industry's leading Internet Protocol communications provider." Proposed Plan of Reorganization Representatives of the company's senior noteholder groups have agreed upon the economic terms of the proposed Plan. These groups represent a majority of the company's Official Committee of Unsecured Creditors that hold in excess of 90 percent of the dollar value of the claims in the company's Chapter 11 cases. The terms of the proposed Plan substantively consolidate the estates of the WorldCom and Intermedia entities, respectively, and reflect a settlement of various litigation arguments each group could have asserted. As part of the Plan, the company also agreed to a proposed capital structure for the reorganized company that will include approximately $3.5 billion-$4.5 billion in debt, net of cash. Later today, the company will file a Disclosure Statement that explains the details of the proposed Plan. The proposed Plan and the Disclosure Statement will be available at the company's Restructuring Information Desk at http://www.mci.com.