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WorldCom Receives Approval of Bankruptcy Motions Court approves use of debtor-in-possession financing; Employees assured of wages going forward NEW YORK, July 24, 2002 WorldCom, Inc. yesterday announced that the U.S. Bankruptcy Court in the Southern District of New York approved $750 million in interim financing that will provide the company with sufficient funds to continue operations, pay employees and continue service to customers. The company has finalized its agreement with the banks providing the debtor-in-possession (DIP) facility. A hearing for final approval of the DIP facility that would permit the company to borrow up to $2 billion is scheduled for September 4, 2002.
The Court also granted all of WorldCom's first day motions that are intended to support its customers, employees and other business partners and provide other forms of operational and financial stability as WorldCom proceeds with its financial reorganization. The Court authorized payment of pre-petition wages, salaries, medical, disability, vacation and other benefits.
The Court also granted a further stay of the scheduled conversion of the MCI group tracking stock into WorldCom common stock until further order of the Court. John Sidgmore, president and chief executive officer of WorldCom, said, "The court's actions today are a solid first step toward restoring financial health to the company. These actions will enable WorldCom to continue operating without interruption and continue to provide service to our customers and a steady income to our employees and vendors." |
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