WorldCom CEO says loan repayments not accelerated
Reuters, 07.02.02, 4:16 PM ET
forbes.com
WASHINGTON, July 2 (Reuters) - WorldCom Inc., the telephone giant struggling with a $3.85 billion accounting debacle, said on Tuesday its lenders have not accelerated the repayment schedule on its credit lines, and it aims to secure a $1 billion funding package to gain a near-term financial cushion.
WorldCom (nasdaq: WCOME - news - people), which has about $2 billion in cash on its books, said it was notified by its banks that it was in default on some of its credit lines, but it has not been required to immediately repay its $30 billion in debt.
"We did get sort of formality letters that were expected from the banks on termination possibility on our bank loan. So far there have been no events of acceleration, no threats of acceleration," Chief Executive Officer John Sidgmore said at a news conference at the National Press Club.
"We are working with banks even as we speak here, talking about various proposals to restructure (our finances). And we are somewhat optimistic that we will get a proposal, if not two proposals, in hand this week to accomplish that," he said.
The No. 2 U.S. long-distance carrier, which stunned Wall Street last week with the announcement that its chief financial officer improperly accounted for $3.85 billion of expenses, said it hopes to have proposals for a financial restructuring this week. The Clinton, Mississippi-based company has been charged with fraud by regulators and expects to have its stock delisted by Nasdaq on Friday. |
