BusinessBusiness RecoveryWorldCom boss fights sinking ship

WorldCom boss fights sinking ship

Embattled WorldCom chief executive John Sidgmore has admitted in an interview that the company's fight to avoid what would be the biggest bankruptcy in history was 'looking much more difficult'.

The company, which has $103.8bn (£66.7bn)of assets according to the US Securities and Exchange Commission, is at the centre of an accounting scandal in which almost $4bn disappeared, used to cover a loss in excess of $1.22bn and causing the company to lay off 17,000 staff worldwide.

In an interview with The Wall Street Journal, Sidgmore conceded that two of four options being discussed involved a Chapter 11 bankruptcy filing, although he would not be drawn on the other alternatives.

The company is currently in talks with money lenders over keeping the firm afloat.

‘Bankruptcy is never the best option unless you have no other viable options,’ Sidgmore said.

Earlier this week, WorldCom received a $5bn offer from by long-distance telephone and internet provider IDT for some of the company’s assets..

IDT chief Howard Jonas said the company would be making offers to WorldCom executives and consulting with federal regulators and investors over offers for parts of WorldCom.

WorldCom has not yet responded to the offer.

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