Bankrupt telco WorldCom moved a step closer to emerging from
bankruptcy this week when it reached agreement with two sets of
creditors, agreeing to increase payments to them. A court hearing
on the reorganisation of the company began on Monday, but adjourned
to allow the negotiations.
WorldCom was brought down by an $11 billion US accounting
scandal that caused it to file for bankruptcy protection last year.
Last month a deal was approved between the company and the
Securities and Exchange Commission in terms of which the telco is
to pay $750 million to investors who lost money as a result of the
fraud.
The new deal between the telco and its creditors is expected to
clear the way for WorldCom to emerge from bankruptcy very soon,
under the new name of MCI.
