[an error occurred while processing this directive]
BBC News
watch One-Minute World News
Last Updated: Tuesday, 20 April, 2004, 16:14 GMT 17:14 UK
MCI out of Chapter 11 bankruptcy
MCI control room
MCI is trying to put the Worldcom scandal behind it
Telecoms firm MCI, formerly known as Worldcom, has emerged from Chapter 11 bankruptcy protection in the US.

Worldcom shot to prominence in 2002 when it admitted to inflating profit reports by illegally booking expenses.

The scandal was a main contributors to a slide in world markets that knocked billions off the value of stocks.

MCI said it had come out of protection with "a sound financial position, unmatched global assets and a strong customer base".

Since 2002, the company has been restructuring under new management, protected by the US's Chapter 11 bankruptcy rules.

Job cuts

MCI provides voice, Internet and data communications to 20 million customers in 65 countries.

After the scandal emerged, MCI cut its stated pre-tax profits for 2001 and 2002 by a reported $74.4bn (41.4bn).

Under the restated figures, Worldcom showed a loss for each of the three years between 2000 and 2002.

It also cut 4,000 jobs and closed a number of call centres in the US.

The new board and management team has been headed by president and chief executive Michael Capellas.

Major clients

Mr Capellas said the company had begun to distribute securities and cash to its creditors following the end of the Chapter 11 process.

The company's European, Middle Eastern, and African operations were not directly affected by the Chapter 11 process.

The group has been trading since last April 2003 as MCI, but has only officially became known under the new name today.

Mr Capellas said MCI had retained all its largest corporate customers, and that long-standing clients like DaimlerChrysler had signed new agreements with the group in the last six months.




SEE ALSO:
Trouble looms for MCI sell-off
16 Mar 04  |  Business
MCI restatement wipes out $74bn
12 Mar 04  |  Business
AT&T hits MCI with lawsuit
02 Sep 03  |  Business
New fraud inquiry for WorldCom
28 Jul 03  |  Business
WorldCom lands Iraq contract
20 May 03  |  Business
WorldCom plans image change
14 Apr 03  |  Business
WorldCom agrees record fine
20 May 03  |  Business


RELATED INTERNET LINKS:
The BBC is not responsible for the content of external internet sites


PRODUCTS AND SERVICES

News Front Page | Africa | Americas | Asia-Pacific | Europe | Middle East | South Asia
UK | Business | Entertainment | Science/Nature | Technology | Health
Have Your Say | In Pictures | Week at a Glance | Country Profiles | In Depth | Programmes
Americas Africa Europe Middle East South Asia Asia Pacific