WorldCom Debt Deadline Looms

As allegations of accounting fraud spread further back in WorldCom's (WCOME Quote) financial history, a critical interest payment scheduled for Monday looms over the company's fate.

The payment deadline strikes on the heels of new findings by a congressional investigation that former CFO Scott Sullivan ignored internal warnings about accounting abuses dating back to 2000. Sullivan was fired last month upon revelations that $3.8 billion in expenses were fudged to enhance the company's flagging earnings performance.

If WorldCom defaults on a $79 million bond coupon payment Monday, the move would likely trigger a bankruptcy filing within a month, say analysts. ...