August 8, 2003 — (WEB HOST INDUSTRY REVIEW) — Worldcom (worldcom.com) announced late Wednesday that it has won approval from the U.S. Bankruptcy Court for the Southern District of New York for its $750 million settlement with the U.S. Securities and Exchange Commission (SEC).
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The settlement, which satisfies a $2.25 billion civil penalty stemming from fraud charges, will consist of $500 million cash and $250 million worth of stock in the reorganized company being paid to eligible stock and bondholders affected by the scandal.
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The settlement clears one of the largest hurdles facing the embattled telco carrier as it attempts to reorganize and emerge from bankruptcy protection under the name MCI in the fall.
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Said Stasia Kelly, general counsel of Worldcom/MCI in a release addressing the settlement: “Today’s ruling represents a key milestone as MCI moves toward emergence from Chapter 11 protection. It represents additional validation of all the positive steps the company has taken over the past year to both put its house in order and establish itself as a leader in good corporate governance. We look forward now to completing our confirmation hearing and emerging from Chapter 11 protection.”
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WorldCom/MCI is a global communications provider that provides advanced communications to businesses, governments and consumers. With a global Internet backbone spanning six continents and 140 countries, Worldcom/MCI serves more than 20 million business and residential customers worldwide.
