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April 14, 2003 — (WEB HOST INDUSTRY REVIEW) — Communications carrier WorldCom Inc. (WorldCom.com) submitted its plan for reorganization this week, saying it intends to emerge from bankruptcy with a new name and a new chief financial officer, carrying only a small part of its former debt load under a plan that gives creditors more control of the company.
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The company named Robert Blakely as its chief financial officer. Blakely was previously CFO of Lyondell Chemical and the former Tenneco Inc.
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Last year, WorldCom submitted the largest bankruptcy filing in history following an accounting scandal that saw the company incorrectly report almost $11 billion dollars. This week the company said it would drop the WorldCom name and take on MCI, the name of the company’s residential long-distance telephone brand.
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The company’s headquarters will move from Clinton, Mississippi to Ashburn, Virginia. WorldCom says its plan calls for the company to reduce its debt load to between $3.5 billion and $4.5 billion, and provides the it with a cash cushion of $1 billion, a significant improvement over the approximately $41 billion in debt that led to the bankruptcy filing.
