MCI reorganisation approved

3 Nov 2003

A US judge has given the thumbs up to a reorganisation plan by MCI, formerly MCI Worldcom, the troubled global telecoms carrier whose former CEO, Bernie Ebbers, faces criminal charges for orchestrating a US$9bn accounting scandal.

The ruling, which clears the way for MCI’s emergence from Chapter 11 bankruptcy protection, was made after MCI reached agreement with remaining creditors in September.

In a statement Michael Capellas, MCI chairman and CEO, said: “This is a great day for MCI. Against all odds, we have reached our confirmation faster than anyone expected.”

MCI’s reorganisation plan was submitted after the company spent ten months rebuilding its business. In that time, it has recruited seven new key executives, including a CFO, a COO, a general counsel and a chief ethics officer, and put in place a corporate governance structure.

“MCI has a strong set of assets, including the world’s farthest-reaching IP backbone, a restructured financial position with strong cash flow, and a healthy balance sheet,” added Capellas, the former CEO of computer maker Compaq, who was hired last December to resurrect MCI’s fortunes.

MCI employs more than 100 people in Ireland and has offices in Dublin, Cork, Galway and Limerick. Customers include Aer Lingus, Fyffes and An Post.

By Brian Skelly