WorldCom refused to comment on the Times story, but analysts predict that the company will use Chapter 11 protection to restructure its debt and get the company running again.
Any bankruptcy protection filing by the $104bn company would eclipse the Chapter 11 filing by collapsed energy trader Enron.
But it is unlikely that the users of the network will notice any difference after the bankruptcy protection filing.
WorldCom is currently being investigated by the chief financial watchdog the US Securities & Exchange Commission over allegations of a $3.8bn (£2.4bn) accounting fraud.
The second largest improvement in ‘significant’ levels of financial distress since the EU Referendum was in professional services, found research from Begbies Traynor
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK
Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies