BusinessBusiness RecoveryMCI facing £560m recovery bill

MCI facing £560m recovery bill

Fresh from its emergence from Chapter 11 bankruptcy protection, MCI is said to have built up a massive professional services bill with two Big Four firms earning a substantial share of the estimated $1bn (£560m) tab.

Link: MCI emerges from WorldCom ashes

The Times reported a source close to the company as claiming the costs associated with the bankruptcy were much higher than first thought following massive bills from lawyers, accountants and consultants.

KPMG, MCI’s auditor, and Deloitte, which provided support to the company’s finance department were both paid well, the source told The Times.

During 2003, MCI spent $800m on professional services fees, and is believed to have spent between $200m and $300m this year.

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