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.

Related Articles

Carillion CFO blew whistle over 'sloppy accounting' months before collapse

Business Recovery Carillion CFO blew whistle over 'sloppy accounting' months before collapse

3m Alia Shoaib, Reporter
Toys R Us UK and Maplin enter into administration after failing to secure buyers

Business Recovery Toys R Us UK and Maplin enter into administration after failing to secure buyers

3m Alia Shoaib, Reporter
How to avoid a Carillion collapse

Business Recovery How to avoid a Carillion collapse

4m Russell-Cooke
Carillion collapse: The week so far and industry reaction

Business Recovery Carillion collapse: The week so far and industry reaction

4m Emma Smith, Managing Editor
Kingston Smith & Partners appointed trustees in bankruptcy of ex-Newcastle United footballer

Business Recovery Kingston Smith & Partners appointed trustees in bankruptcy of ex-Newcastle United footballer

4m Emma Smith, Managing Editor
Carillion: PwC appointed as special managers – what happens now?

Business Recovery Carillion: PwC appointed as special managers – what happens now?

4m Emma Smith, Managing Editor
Investment firm acquires Avon Steel Company Limited

Business Recovery Investment firm acquires Avon Steel Company Limited

6m Emma Smith, Managing Editor
Manchester law firm enters into administration

Business Recovery Manchester law firm enters into administration

6m Emma Smith, Managing Editor