r
r
r
May 8, 2002 — (WEB HOST INDUSTRY REVIEW) — Troubled telecommunications provider WorldCom (WorldCom.com) is expected to borrow $2.6 billion from its banks in order to modify its financing terms, the New York Times reported today.
r
r
According to the report, which quotes executives “close to the company”, the move is part of an effort by John Sidgmore, the company’s new CEO, to reassure customers that may be concerned that WorldCom is on the verge of filing for bankruptcy protection.
r
r
“Customers are calling, asking, `Are you going to be around next year?’” an executive told the Times. “That kind of thinking has to be eliminated.”
r
r
The report also said that WorldCom, which currently has $8 billion in credit lines that it has not used, may be required to provide something to its banks in return for the new loan. One possibility is that the loan will be secured using WorldCom assets, the report said.
r
r
Shares in WorldCom have slipped from heights of $64 dollars in 1999 to below $2.40 Tuesday as the telecommunications sector continues to struggle with the fallout caused by the end of the tech boom.
