"Oh, what a tangled web we weave,
When first we practice to deceive."
- Sheriff Andy Griffith
Feb. 8, 2002: WorldCom cuts 2002 revenue and earnings projections and announces second-quarter charge of $15 billion to $20 billion to write down some acquired operations. CEO Bernard Ebbers owes his company $366 million to cover loans he took out to buy his own shares.
Feb. 15, 2002: WorldCom suspends three star employees and freezes the commissions of at least 12 salespeople over an order-booking scandal in three of its branch offices.
March 12, 2002: The SEC launches inquiries into WorldCom's accounting practices, on the heels of Enron scandals and Global Crossing's bankruptcy filing.
April 3, 2002: WorldCom plans to lay off as much as 10% of its 75,000 work force.
April 22, 2002: WorldCom slashes at least $1 billion from its revenue projections for 2002.
April 24, 2002: WorldCom debt is downgraded by Moody's and Fitch
April 30, 2002: Bernard J. Ebbers resigns as chief executive of WorldCom.
May 9, 2002: Moody's and Fitch each slash WorldCom's debt three notches, to "junk" status, pushing shares to a new low.
May 21, 2002: WorldCom eliminates its MCI Group tracking stock, hoping to save money that would have gone to dividends.
June 5, 2002: WorldCom announces plans to cut up to 20% of its work force in a restructuring that would involve selling its wireless unit.
June 20, 2002: WorldCom says it will defer interest payments on some preferred securities of MCI Group, to conserve cash.
June 24, 2002: WorldCom shares fall below $1 after analyst Jack Grubman issues a negative report about the telecom's finances.
June 25, 2002: WorldCom unveils massive corporate fraud, with $3.8 billion in expenses that were improperly booked as capital expenditures.
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