Lucent Dismisses Bankruptcy Rumors as 'Baseless'

Lucent (LU Quote) issued a brief statement Wednesday dismissing rumors that the telecom equipment maker was close to filing for bankruptcy, saying the company's $6.5 billion lines of credit provide the financial resources and flexibility to complete its turnaround plan.

The company said "we are already seeing positive impacts from our comprehensive restructuring program. The rumors that Lucent is filing for bankruptcy are baseless and irresponsible. We will report, in detail, on the progress we are making when we issue our results for the second fiscal quarter of 2001 later this month."

Shares of Lucent lost 45 cents, or 5.7%, to $7.40 in recent New York Stock Exchange trading, breaking through the 52-week low of $7.59. The stock traded as low as $5.50 earlier in the session.