BusinessBusiness RecoveryCustomers set to abandon WorldCom/MCI

Customers set to abandon WorldCom/MCI

An independent group of WorldCom stockholders has claimed that over 4,500 customers of WorldCom/MCI intend to abandon the company over its planned bankruptcy reorganisation.

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”.’

Related Articles

Investment firm acquires Avon Steel Company Limited

Business Recovery Investment firm acquires Avon Steel Company Limited

1w Emma Smith, Managing Editor
Manchester law firm enters into administration

Business Recovery Manchester law firm enters into administration

1w Emma Smith, Managing Editor
KPMG appoints new global head of insolvency

Business Recovery KPMG appoints new global head of insolvency

4w Emma Smith, Managing Editor
EY hired by Carillion to review finances

Accounting Firms EY hired by Carillion to review finances

5m Alia Shoaib, Reporter
Using insolvency as a debt recovery tool

Business Recovery Using insolvency as a debt recovery tool

6m Emma Smith, Managing Editor
UK government should support mid-sized businesses to create a ‘new economy’ post-Brexit, says BDO report

Business Recovery UK government should support mid-sized businesses to create a ‘new economy’ post-Brexit, says BDO report

8m Alia Shoaib, Reporter
Over 800 jobs saved as Endless LLP acquires Jones Bootmaker

Business Recovery Over 800 jobs saved as Endless LLP acquires Jones Bootmaker

9m Emma Smith, Managing Editor
FRP Advisory expands operation with new office, partner appointments

Accounting Firms FRP Advisory expands operation with new office, partner appointments

10m Emma Smith, Managing Editor