Bankruptcy specialist named as WorldCom CFO
Bankrupt US telecom WorldCom has appointed a corporate recovery specialist as its new chief financial officer.
John Dubel will replace disgraced former CFO Scott Sullivan, who resigned shortly after allegations of a $4bn fraud emerged in June.
Dubel and Gregory Rayburn, hired as chief restructuring officer, join the company from AlixPartners LLC, a restructuring firm which was recently hired by Kmart, the bankrupt retail group.
Primary responsibility for Dubel and Rayburn will be to oversee the restructuring of WorldCom, including negotiating with creditors and assessing financial projections.
At the same time it emerged that WorldCom is to close its wireless phone business – two million customers will be transferred to other service providers.
WorldCom filed for Chapter 11 bankruptcy protection a week ago, the biggest such filing in US history.