A group of MCI WorldCom shareholders campaigning against the telco's bankruptcy reorganisation plan claims to have received over 10,000 email messages supporting a boycott of the 'new MCI'.
Accountancy Age, 01 Jul 2003
'Thousands of people apparently feel that the current bankruptcy reorganisation plan is unfair,' said Neal Nelson, spokesperson for the MCI WorldCom Stockholders Group, in a statement.
'The US Trustee and the bankruptcy judge may accept this plan but the average citizens may reject it by cancelling their MCI WorldCom service.'
Nelson said the reorganisation plan would transfer ownership of the new MCI to the current bondholders and leave the current WorldCom and MCI stockholders with nothing.
The MCI WorldCom Stockholders Group favours an alternate plan with 50% debt reduction, where the bondholders would get 50% ownership of the reborn company and, in which, the current stockholders would be given 50% equity.
'Through total domination of the bankruptcy committees, the bondholders have prevented consideration of a compromise plan,' claimed Nelson.
'The only avenue left for effective protest against this plan is to threaten a boycott of the "new MCI"', he said
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