MCI Reorganization Wins Court Approval, Emergence Expected in Early 2004

Posted: 12/2003

MCI Reorganization Wins Court Approval, Emergence Expected in Early 2004

A judge has approved the reorganization plan of MCI, paving
the way for the No. 2 long-distance carrier to emerge from the largest
bankruptcy in U.S. history.

In national conference call, Michael Capellas, Chairman and
CEO of MCI, revealed the Ashburn, Va., company is on track to regain its
independence in early 2004. The former WorldCom projects it will emerge from
bankruptcy with $5.8 billion in restructured debt, $8.2 billion in shareholder
equity and $5.3 billion in cash.

In a bankruptcy court filing over the summer, MCI projected
2004 net income of $1.07 billion on $24.56 billion in revenue.

Responding to speculation that the company would lead a price
war, Capellas says, We will not, but We will protect our territory and
we will be competitive.

MCI employs about 55,000 people around the world, down from
60,000 at the beginning of the year.

We dont provide specifics on future plans for
employment, but MCI has said that the company will continue to hire and reduce
positions as we restructure to better position the company in the marketplace,
says MCI spokeswoman Julie Moore.

Capellas, who was hired by MCI to lead it out of bankruptcy
and restore credibility after the company disclosed a multi-billion dollar
fraud, said he does not plan to leave the company.

I have no plans of leaving whatsoever, he says. The
one thing I dont worry about is running out of things to do.


Leave a comment

Your email address will not be published. Required fields are marked *

The ID is: 69953