BusinessBusiness RecoveryWorldCom starts plea to emerge from bankruptcy

WorldCom starts plea to emerge from bankruptcy

Today, in New York, WorldCom will attempt to convince judge Arthur Gonzalez that it should emerge from the biggest bankruptcy protection in US history.

Link: WorldCom special

Gonzalez will preside over a confirmation hearing, where WorldCom, now known as MCI, will set out its reorganisation plan, in what is expected to be a packed court of lawyers, creditors and expert witnesses, according to the New York Times.

If the plan is approved the last stumbling block will be removed to rid the company of more than $30bn of debt.

The proposal would see shareholders lose their investments and secured creditors would be forced to take on newly issued stock.

Experts expect the plan to be approved, but with modifications, the New York Times said.

WorldCom collapsed into Chapter 11 in July 2002 with an estimated $11bn accounting hole.

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