WorldCom files for bankruptcy The company files for Chapter 11 bankruptcy protection after buckling under an accounting scandal and a mountain of "junk-rated" debt. July 21, 2002. Could the Internet go dark?The costly disruption or slowdown of service because of financially strapped telecommunication providers is the latest major concern for companies. July 19, 2002. Europe's telecom troublesKPNQwest watches employees walk out as the future of the troubled company remains murky. Once Europe's largest network, the company could be sold off in parts. July 19, 2002.
But WorldCom has lost at least one potential customer, It was in the running iphone xs max purple sheer crystal case and balloon dog for a Federal Aviation Administration contract worth a possible $3.5 billion, WorldCom had been the incumbent on that contract, but the new deal went to international communications equipment company Harris, "That their existing customers aren't running out the door is one thing, but WorldCom isn't winning any new big business, That new money isn't coming in the door when it needs it," said Lisa Pierce, research fellow at Giga Information Group, "I haven't seen any customers moving to WorldCom in this time, I do know of a number of cases where WorldCom was being considered and didn't get the (contract)."..
And although the bankruptcy filing will help stabilize the financial situation, Pierce added, "it doesn't solve any legal problems.". WorldCom, with 60,000 employees and operations in 65 countries, said it expects to hire a restructuring expert to aid the management team, and it aims to emerge from Chapter 11 in about nine to 12 months. The bankruptcy does not include its international operations. The company, which has more than 20 million customers and transmits half the world's Internet traffic, said it will have access to up to $2 billion in debtor-in-possession funding to keep operating, maintain its network and pay employees under the bankruptcy reorganization.
The Clinton, Miss.-based company on Monday received approval from the U.S, Bankruptcy Court for the Southern District of New York for $2 billion in debtor-in-possession funding to keep the company operating while it reorganizes, Sidgmore said Monday that he plans for the company to hold onto as iphone xs max purple sheer crystal case and balloon dog much of the "core business" as possible, "Our plan is going to be essentially to keep company intact, It doesn't mean we won't have some business restructured, or that we won't get out of some businesses, But I suspect our plan will include keeping core centerpieces intact," he said, listing UUNet, the U.S, long-distance business and its data business in particular, the CEO added..
"The reorganization here is not going to be the (type) where you jump in and sell all the assets, in my opinion. The value in WorldCom is not in the switches and pipes we have underground and the hard assets. I think the value of WorldCom is the 20 million customers, the brands, the customer relationships and the product set.". He said he did not expect the company to announce any more layoffs; WorldCom has already said it is letting go about 28 percent of its work force. Reuters contributed to this report.