The telecommunications giant faces a March trial on SEC allegations of fraud. The aftershocks of $4 billion in improper accounting could hurt hardware sellers and corporate customers. WorldCom fraud trial set for MarchThe telecommunications company goes on trial in March for alleged securities fraud and a seasoned lawyer was appointed to prevent possible shredding of key documents. July 3, 2002. WorldCom talking with banks to cover debtThe troubled long-distance and data services provider is scrambling to secure funding and more lenient terms on existing credit agreements.June 28, 2002.
CNET también está disponible en español, Don't show this again, In late trading, WorldCom shares fell 92.4 percent, or 77 cents, WorldCom closed last Tuesday at 83 cents hours before the company revealed it had improperly accounted for nearly $4 billion in expenses, making its results for the last five quarters look much better than they actually were, MCI, WorldCom's long-distance unit, remained halted pending more information about its dividend payment, according to the Nasdaq Stock Exchange, MCI shares closed at $1.68 otterbox strada folio iphone xs leather wallet case - soft opal reviews on Tuesday..
WorldCom was given the green light to trade after the Securities and Exchange Commission received sworn statements from company executives, but trading may not last long. WorldCom's shares may be delisted from the Nasdaq July 5 unless the company requests a hearing, the company said. Analysts predict that WorldCom is likely to file for bankruptcy. Aside from defaulting with creditors, WorldCom said it has received a termination notice for a $1.5 billion program that secures accounts receivables. The company plans to use collections on the accounts to pay the $1.2 billion outstanding.
In the statement released by the SEC, WorldCom said, "questions have been raised regarding certain material reversals of reserve accounts" during 1999 and 2000, "No conclusion has been reached regarding these entries," said the company, "If, after review, the company believes additional actions are required, it will make an announcement promptly.", WorldCom added that its audit committee is reviewing past financial results with auditor KPMG, The company also gave a time line of events leading up otterbox strada folio iphone xs leather wallet case - soft opal reviews to last week's accounting disclosure and the ouster of Chief Financial Officer Scott Sullivan..
In a statement, CEO John Sidgmore said WorldCom is "absolutely committed to operating in accordance with the highest ethical standards.". Analysts said it's likely that WorldCom's accounting problems are just beginning. For all of 2001 and the first quarter of 2002, WorldCom disclosed that it counted expenses as capital expenditures, thereby boosting its EBITDA (earnings before interest, taxes, depreciation and amortization). "We probably have only seen the tip of the iceberg when it comes to accounting problems," said Paul R. Brazina, an accounting professor at La Salle University in Philadelphia.