November 18, 2000 |
WorldCom Inc. won conditional approval from the U.S. Justice Department to acquire Intermedia Communications Inc. and thus control of the Web-hosting firm Digex Inc. Under the deal, the long-distance carrier will obtain a 55% equity stake and 94% voting stake in Digex, but it will divest the remaining operations and assets of Tampa, Fla.-based Intermedia to address antitrust concerns, the Justice Department said. The acquisition also requires approval from the Federal Communications Commission.
June 8, 2004 |
WorldCom Inc.'s former chief financial officer pleaded guilty to one count of conspiracy to commit securities fraud, the Mississippi attorney general's office said. Scott Sullivan faces up to five years in state prison and a fine of $5,000. No sentencing date has been set. In March, Sullivan pleaded guilty to federal charges of securities fraud, conspiracy and false statements to regulators, and he agreed to testify against his boss, former Chief Executive Bernard J. Ebbers.
November 7, 2003 |
A judge delayed until March the prosecution of WorldCom Inc. on charges it defrauded Oklahoma shareholders by inflating revenue and expenses. Oklahoma Atty. Gen. Drew Edmondson sought the delay at the request of U.S. Atty. James B. Comey, who warned that state prosecution of the company could compromise witnesses in his case against former WorldCom Chief Financial Officer Scott D. Sullivan. Sullivan's trial is set to begin Feb. 4 in New York.
July 7, 2004 |
MCI Inc., former WorldCom Inc. Chief Executive Bernard J. Ebbers and 18 ex-WorldCom executives agreed to pay about $51 million to settle a suit by employees who lost billions of dollars when the long-distance telephone company collapsed, lawyers for the employees said. The pact leaves 401(k) fund trustee Merrill Lynch Trust Co. of America as the only active defendant. The employees of WorldCom are seeking about $100 million from Merrill, their lawyers said.
June 18, 2002 |
WorldCom Inc. had its credit ratings cut two levels by Standard & Poor's because of potential delays in arranging a $5-billion bank line and the need to refinance $9 billion of debt maturing in the next three years. The rating of the second-biggest U.S. long-distance phone carrier was lowered to B+, four levels below investment grade, from BB. WorldCom, with $30 billion of debt, is trying to arrange the bank lines to replace lines that expire next month and to repay $4.
February 1, 2005 |
WorldCom Inc.'s former controller, David Myers, testified in federal court in New York that he never knew former Chief Executive Bernard J. Ebbers to make an accounting decision as the company slid into a financial abyss and began hiding billions of dollars in expenses to fool Wall Street. Accused of overseeing an $11-billion accounting fraud at WorldCom, now known as MCI Inc., Ebbers faces fraud, conspiracy and false filings charges that together carry a top penalty of 85 years in prison.
June 11, 2003 |
WorldCom Inc. said its general counsel and treasurer resigned, a day after they were criticized in a report about the company's former management and lack of oversight. Michael H. Salsbury was an executive vice president and counsel; Susan Mayer was a senior vice president and treasurer. The report, prepared by former Atty. Gen. Richard L.
May 3, 2003 |
Several big firms under investigation for accounting irregularities aim to recoup federal taxes they overpaid based on inflated profits. WorldCom Inc., Enron Corp., Qwest Communications International and HealthSouth Corp. are pursuing or considering filing for tax refunds or credits for payments made on billions of dollars falsely claimed as earnings. The effort was first reported in the Wall Street Journal. Senate Finance Committee Chairman Charles E.
June 21, 2002 |
WorldCom Inc., with more than $30 billion in debt, had its senior unsecured debt ratings cut further to "junk" by Moody's Investors Service after the second-biggest U.S. long-distance company said it will defer some interest payments. Moody's lowered the rating on WorldCom's debt two notches to B1 from Ba2. Moody's cited WorldCom's deferral of interest payments on certain preferred securities and debentures. The downgrade affects all of WorldCom's debt.
July 26, 2003 |
WorldCom Inc.'s plan to reorganize has inadequate safeguards for its pension funds, which are underfunded by $281.3 million, a U.S. agency said in a Bankruptcy Court filing. The Pension Benefit Guarantee Corp. objected to WorldCom's plan because it failed to explicitly state that the reorganized company would maintain the pension funds and attempted to exclude some beneficiaries. Ashburn, Va.-based WorldCom, the No. 2 U.S.