Judge approves MCI recovery plans
Failed telecoms provider WorldCom is to re-emerge from chapter 11 protection under its new guise MCI, after a US judge approved the company's recovery plans last week.
The approval comes two months after the Oklahoma state attorney filed criminal charges against MCI and six former employees including the former chief executive Bernie Ebbers and former chief financial officer Scott Sullivan.
Bankruptcy Court judge Arthur J Gonzalez has cleared MCI’s Plan of Reorganisation, which includes a new board of directors, a retention of all business assets and a focus on profitability growth.
Seven new executives have been appointed including a new chief financial officer, general counsel plus a chief ethics officer.
MCI chairman and CEO Michael Capellas said: ‘MCI has a strong set of assets, including the world?s farthest-reaching IP backbone, a restructured financial position with strong cash flow, and a healthy balance sheet.’