MCI shareholders revolt over reorganisation

Link: MCI embroiled in pensions row

‘The current reorganisation plan would essentially eliminate the company’s debt, but it would also transfer 100 per cent ownership of the ‘new MCI’ to the current bondholders and leave the current WorldCom and current MCI stockholders with nothing,’ said Neal Nelson, a spokesperson for the WorldCom/MCI Stockholder Group, in a statement.

‘The stockholders favor an alternate plan with partial debt reduction, where the bondholders would take over partial ownership of the new company and the original stockholders would be given some equity in the new firm,’ he said.

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

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