BusinessBusiness RecoveryNew WorldCom head to improve governance

New WorldCom head to improve governance

Michael Capellas, the new chairman and chief executive of WorldCom, plans to appoint a director of corporate governance and nominations at the debt-ridden telecom giant in a move aimed at rebuilding credibility with investors.

Link: WorldCom scandal in depth

The former head of Hewlett Packard, whose move across to WorldCom was approved last week, said the new director would be responsible for revamping the company’s board and attracting new members.

Some creditors are calling for the entire board associated with former chief executive Bernie Ebbers to step down, according to reports,

But Capellas, who will take charge of WorldCom at the beginning of December, is said to want to hold onto the three directors appointed since the departure of Ebbers. Capellas is also believed to be considering dropping the WorldCom name.

The disgraced former telecoms giant filed for bankruptcy protection in July this year, becoming the biggest case of insolvency in US history.

Valued at $175bn (£111bn) at its height in 1999, WorldCom’s collapse followed fraud charges over accounting errors which now stand at $9bn.

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