Customers set to abandon WorldCom/MCI

Link: WorldCom report: Sullivan masterminded fraud

The group said thousands of shareholder/customers had vowed to cancel their long distance or internet service if the company’s current controversial bankruptcy reorganisation plan is approved.

‘There seems to be a groundswell of anger at big money’s use of the bankruptcy process to take assets from individual stockholders,’ said Neal Nelson, spokesperson for the WorldCom/MCI Stockholders Group in a statement.

‘We are receiving over 1,000 emails a day indicating that people intend to cancel their WorldCom/MCI service if the current bankruptcy plan is approved.

‘The WorldCom bankruptcy reorganisation plan would essentially eliminate the company’s debt, but it would also transfer 100% ownership of the ‘new MCI’ to the current bondholders and leave the current WorldCom and MCI stockholders with nothing,’ added Nelson.

The stockholders’ group favours an alternate plan with partial debt reduction, where the bondholders would get partial ownership of the new company and the current stockholders would be given some equity in the new firm.

‘Through total domination of the bankruptcy committees, the bondholders have prevented consideration of a compromise plan,’ said Nelson, ‘The only avenue left for effective protest against this plan is to threaten a boycott of the “new MCI”.’