BusinessBusiness RecoveryMCI shareholders revolt over reorganisation

MCI shareholders revolt over reorganisation

A group of WorldCom shareholders claim that 2,500 customers of the troubled telco plan to cancel their long distance or internet service with the 'new MCI', if the company's current bankruptcy reorganisation plan is approved.

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’.’

Related Articles

Investment firm acquires Avon Steel Company Limited

Business Recovery Investment firm acquires Avon Steel Company Limited

5d Emma Smith, Managing Editor
Manchester law firm enters into administration

Business Recovery Manchester law firm enters into administration

5d Emma Smith, Managing Editor
KPMG appoints new global head of insolvency

Business Recovery KPMG appoints new global head of insolvency

3w 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