Two years on from triggering one of the biggest scandals in corporate history, MCI, formerly known as WorldCom, has emerged from Chapter 11 bankruptcy protection.
Accountancy Age, 21 Apr 2004
Yesterday's emergence signified that MCI's plan of reorganisation, confirmed last October by the US Bankruptcy Court for the Southern District of New York, is now effective.
The company has begun the process of reimbursing creditors and distributing securities.
Michael Capellas, president of MCI and CEO said: 'MCI's turnaround is a tribute to the human spirit and the amazing will of our 50,000 dedicated employees.'
He said MCI had emerged with a 'new board and management team, a sound financial position, unmatched global assets, a strong customer base and industry-leading service quality'.
Troubles for WorldCom began in June 2002 when it revealed an $11bn (£6.15bn)accounting fraud, which led to pre-tax profits for 2001 and 2002 being cut by a massive $74bn (£41bn).
The WorldCom scandal, coming soon after Enron, was the main contributor to the slide in world markets, which saw billions wiped off the value of shares.
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