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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: farkarooski who wrote (70130)	5/21/2002 6:51:54 PM
From: manny t	Respond to of 99280

WCOM,more info: 06:11 PM DJ WorldCom/Tracking Stock-4:Move May Be Concession To Banks The elimination of the MCI tracking stock caps several months of mounting problems for WorldCom, including operational challenges and debt concerns as the communications sector has suffered. The move may be a concession to banks willing to back a $5 billion bank credit line maturing in 2005 and 2006. Last week, the company drew down all of a $2.65 billion bank credit line to improve its negotiating position in obtaining the bank credit line. The company expects to have the new bank line in place by some time in June. The Financial Times reported Sunday that WorldCom reached formal agreements with banks on a new $1.5 billion accounts receivable securitization program to replace a $2 billion program. The previous program, which allows the company to sell its customers' bills to a third party - thus improving its access to cash - expires Thursday. In April, WorldCom slashed its 2002 revenue projection by $1 billion because of constricted corporate spending on telecom services. Company founder and Chief Executive Bernie Ebbers resigned under pressure following criticism of a $366 million personal loan the company made to him and the declining stock price, which has plummeted from a high of $64 to less than $2. WorldCom is also the subject of an inquiry by the Securities and Exchange Commission, and its debt rating has been cut by Moody's Investors Service, Fitch Ratings and Standard & Poor's. On April 14, the company was removed from the S&P 500 Index. The greatest challenge for WorldCom continues to be paying down its debt, which stands at about $30 billion. But analysts believe the $1.5 billion accounts receivable securitization plan and the $5 billion bank credit line - together with expected improvements in free cash flow - will allow WorldCom to meet its obligations through 2004. Company Web site: worldcom.com -Susan Willetts; Dow Jones Newswires; 201-938-5388 (END) DOW JONES NEWS 05-21-02 06:47 PM