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March 14, 2003 — (WEB HOST INDUSTRY REVIEW) — Bankrupt telecommunications carrier WorldCom (WorldCom.com) said on Thurdsday that it would take a $80 billion write-down, pushing the company into one of the largest US corporate losses.
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WorldCom said it would cut the value of its property, plant and equipment and other intangible assets from $44.8 billion to about $10 billion. The company’s goodwill, valued at $45 billion, will be written off completely.
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The WorldCom write-down is the second-largest in history after AOL Time Warner, which reduced the value of its assets by $99.7 billion last year. WorldCom has been battling to maintain market share as customers have defected to rivals in the wake of the company’s accounting scandal.
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WorldCom said it would not issue a balance sheet or cash flow statement until it had completed a thorough balance sheet evaluation. The company met with creditors this week to outline its strategy for the next three years. The company said last month that it would cut about 5,000 jobs in an effort to reduce costs.
