September 10, 2003 — (WEB HOST INDUSTRY REVIEW) — Embattled telco carrier Worldcom (worldcom.com) said yesterday it had reached a settlement with two groups of creditors who had opposed the company?s reorganization plan, according to several media reports.
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“With today’s proposed settlement among the various creditor groups, MCI has cleared one of the last major hurdles along its path toward emergence from Chapter 11,” CEO Michael Capellas said in a statement.
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Capellas also confirmed that the company?s board of directors have approved the proposed settlement with final approval by the Official Committee of Unsecured Creditors expected for later today.
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The proposed settlement, which calls for Worldcom to pay a $750 million fine to the U.S. Securities and Exchange Commission (SEC) to satifsy a $2.25 billion civil penalty, won approval from the U.S. Bankruptcy Court for the Southern District of New York in early August.
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Worldcom is attempting to reorganize and emerge from bankruptcy protection this fall under the name MCI after being charged with one of the largest accounting frauds in history.
