WorldCom Inc. today filed its proposed plan of reorganization with the U.S. Bankruptcy Court for the southern distr...
April 14, 2003
WorldCom Inc. today filed its proposed plan of reorganization with the U.S. Bankruptcy Court for the southern district of New York, delivering on its “fast track” Chapter 11 reorganization schedule.
The company also announced the appointment of Robert Blakely as its new CFO, a brand name change to MCI, and the relocation of its corporate headquarters to Ashburn, Va.
“We committed to file our plan of reorganization by April 15 and we delivered,” said MCI’s chairman and CEO Michael Capellas. “Our company has demonstrated a new fast and focused attitude and a commitment to emerge from Chapter 11 later this year as a leaner, stronger competitor.
As part of the plan, the company also agreed to a proposed capital structure for the reorganized company that will include approximately US$3.5 billion-$4.5 billion in debt.
Capellas and his team announced in January 2003 a 100-Day Plan, the conclusion of which was today’s filing. During that time, the company implemented a number of new corporate governance measures. The company restructured its board of directors and installed a new leadership team. It has an Ethics Office that, among other things, is implementing ethics and financial reporting training and enforcing a new code of ethics and business conduct.
Blakely recently competed a four-year appointment as a member of the Financial Accounting Standards Advisory Council, which advises the Financial Accounting Standards Board on issues relating to full and complete financial reporting and disclosure. He also served as a founding member of Standard & Poor’s Issuer Advisory Council.
As part of its efforts to move forward, the company is unifying under a new corporate banner – MCI. The company’s wholesale business will be sub-branded as UUNET.
“We wanted a new name that would make us proud,” said Capellas. “Once we evaluated our branding options, we realized that we already had a winner – MCI.”