WorldCom To Change Name And Headquarters - InformationWeek

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WorldCom To Change Name And Headquarters

The carrier expects to file a reorganization plan in federal bankruptcy court; it will take the name of its long-distance carrier, MCI, and move its headquarters to Ashburn, Va.

NEW YORK (AP) -- Phone carrier WorldCom Inc. said Monday it intends to emerge from the largest-ever U.S. bankruptcy later this year with a new name and new headquarters.

The company said it expected to file the plan in U.S. Bankruptcy Court sometime Monday, the day before the deadline chairman and CEO Michael Capellas had set for the plan in January.

WorldCom said it plans to take the name of its long-distance service, MCI, and shift its headquarters to MCI's base in the Washington suburb of Ashburn, Va., from Clinton, Miss., where it was founded.

MCI is the nation's second largest long-distance carrier and adopting its name "would make us proud," Capellas said.

In a statement, the company also named Robert T. Blakely, the former chief financial officer of Tenneco Inc. and Lyondell Chemical, as its new CFO.

WorldCom filed for bankruptcy protection in July and has admitted to accounting fraud that could top $11 billion. Founder and former CEO Bernard Ebbers built the company through acquisitions.

"Our company has demonstrated a new fast and focused attitude, and a commitment to emerge from Chapter 11 later this year as a leaner, stronger competitor," Capellas said.

WorldCom said its plan has backing of groups that represent a majority of its unsecured creditors committee. The unsecured creditors hold more than 90 percent of the value of the claims against the company.

The plan, which requires court approval, would leave the company with debt of between $3.5 billion and $4.5 billion. The company had more than $30 billion in debt when it filed for Chapter 11.

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