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Technology Stocks : WCOM -- Ignore unavailable to you. Want to Upgrade?

To: shortilong who wrote (10056)	5/14/2002 12:40:09 AM
From: molemania	Respond to of 11568

shortilong - i was going to ask the same thing but don't tune in often and figured i should probably already know. can WCOM file BK now to get the debt taken care of and move on sooner? or is there some criteria that has to be met? what would be the disadvantage of WCOM filing now if they could?

To: shortilong who wrote (10056)	5/14/2002 7:01:55 AM
From: Rock_nj	Respond to of 11568

I have no idea. There must be a bankruptcy lawyer somewhere on SI. I would guess that in order for a Chapter 11 filing to be accepted by a court that a company would have to demonstrate a certain degree of distress. Because the whole idea behind a Chapter 11 filing is to seek protection from its creditors. So, the court would have to see evidence that they in fact are in need of protection from their creditors. Like I said earlier, I think WCOM has brought a lot of their problems on themselves through lax management. It has been obvious for over a year that there is a major telecom slowdown taking place. WCOM management should have evaluated their situation and taken the necessary steps to make it through this slowdown. They should have already sold assets and reduced their debt levels and layed off workers to cope with the slowing business environment. The big boys certainly must think WCOM will go bankrupt or their stocks and bonds wouldn't be trading at such distressed levels. Keep that in mind all you small time Wall Street gurus. The big boys on the street have access to more information and have more experience than you in these situations. If they're selling, you probably should be too. My feeling is that WCOM's stock would never be trading this low if there wasn't credible threat of bankruptcy that the big boys on Wall Street see in WCOM's future. Buyer beware!