WorldCom looks for £5bn in new funding

Chief executive John Sidgmore told reporters in Washington yesterday that the fate of WorldCom depended on banks to which WorldCom owes around $30bn (£19bn).

These financial institutions have not yet asked WorldCom to pay them back yet and Sidgmore said they were working together on proposals.

WorldCom, which carries around half of the traffic on the web, has just $2bn in cash at its disposal and is looking for around $5bn in funding.

Sidgmore, who replaced former chief executive Bernard Ebbers two months ago, promised to release full details of the accounting scandal ‘when we know it.’

Meanwhile, WorldCom has requested a hearing before a Nasdaq Listing Qualifications Panel to respond to the tech stock market’s notice that the company has not complied with certain filing and fee requirements necessary for continued listing.

According to Nasdaq rules, WorldCom’s common and preferred stocks will continue to be listed on The Nasdaq National Market pending the issuance of a written determination by the Panel after the hearing.

There can be no assurance that the Panel will grant WorldCom’s request for the continued listing, the company said.

‘WorldCom intends to make its case heard, and we believe that Nasdaq will see that our company is doing everything in its power to uncover the circumstances of the intended restatement and to make all the appropriate regulatory filings as soon as possible,’ Sidgmore said in a statement.

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