MCI Clears the Decks

Just a month after taking a timeout to get its act together, MCI closed the books Friday on some $74 billion in false profits.

The company made public revised 2000 and 2001 annual reports Friday that outlined some of the $11 billion in revenue overstatements during the Bernie Ebbers era. The company also posted a $9.2 billion audited 2002 loss. The papers, filed with the Securities and Exchange Commission and the federal bankruptcy court, clear the way for MCI to emerge from Chapter 11 protection next month.

"This filing culminates the largest and most complex financial restatement ever undertaken," said financial chief Bob Blakely. "It is one of the last remaining milestones on our path to emerge from Chapter 11 protection." ...