WorldCom Files for Bankruptcy
Updated from 7:29 p.m. EDT
The telecom meltdown entered a molten stage Sunday as WorldCom (WCOME Quote) filed for Chapter 11 protection in the biggest-ever U.S. bankruptcy filing.
The Clinton, Miss., telco filed late Sunday with the U.S. Bankruptcy Court for protection from its creditors, listing $104 billion in assets. The filing will help WorldCom secure financing, easing a cash crunch that staggered the company this month after anxious vendors began demanding immediate payment. WorldCom will continue operating its phone and business data services units as it reorganizes under bankruptcy law protection.
In a release issued late Sunday, WorldCom also announced that it obtained an agreement to arrange up to $2 billion in debtor-in-possession, or DIP, financing. It already has secured a commitment of $750 million of this amount from Citibank, J.P. Morgan Chase and General Electric Capital. ...
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