Link: $80bn loss for WorldCom
MCI chairman and chief executive Michael Capellas said that the firm had ‘worked with an outrageous sense of urgency’ to deliver the Chapter 11 filing by today’s deadline. ‘We committed to file our Plan of Reorganisation by April 15 and we delivered,’ he said in a statement.
‘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,’ Capellas added.
Previously called MCI WorldCom, it dropped the MCI tag in late 2000, after it completed its merger with Sprint. Now the company has returned to its naming roots in a effort to shrug off WorldCom’s poor image.
Moving forward, the company’s focus would be on serving its customers, strengthening core assets, executing on its three-year business plan, and solidifying its position as the industry’s leading Internet Protocol communications provider, Capellas added.
According to the company, noteholder groups have agreed to the economic terms of the proposed restructuring plan. These groups represent a majority of the hold more than 90 per cent of the total 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 aim to settle various litigation arguments each group could have asserted. As part of the plan,MCI also proposed capital structure for the reorganised company that will include between approximately $3.5bn and $4.5bn in debt, net of cash.
At the same time, the company announced the appointment of Robert T. Blakely as its new chief financial officer. Blakely has served as executive vice president and CFO of both Tenneco and Lyondell Chemical. Later today, the company promises it will file a Disclosure Statement that explains the details of the proposed plan at http://www.mci.com/.
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Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies
Smith & Williamson has been appointed administrators of charity 4Children