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To: tejek who wrote (10479)	6/5/2002 6:42:53 PM
From: Rock_nj	Respond to of 11568

WorldCom Gets Four Banks to Help With $5 Bln in Loans (Update1) By Mark Lake Clinton, Mississippi, June 5 (Bloomberg) -- WorldCom Inc. moved a step closer to raising $5 billion in new financing by signing on four more banks to provide the loans, according to people familiar with the matter. The second-largest U.S. long-distance company, which is weighed down by $30 billion in debt, persuaded ABN Amro Holding NV, Westdeutsche Landesbank Girozentrale, Deutsche Bank AG and Bank of Tokyo-Mitsubishi Ltd. to join J.P. Morgan Chase & Co., Bank of America Corp. and Citigroup Inc. as underwriters of the financing, the people said. The commitments are a sign WorldCom may be able to convince other banks to lend and raise the $5 billion it needs to replace existing credit lines that expire next month and repay $4.1 billion in bond debt maturing in 2004. Last month, WorldCom got a $1.5 billion loan backed by revenue from customer bills. ``It's a positive sign that a number of people have looked them over and are willing to extend them credit,'' said Brian Bruce, who manages $8 billion for PanAgora Asset Management in Boston and owns WorldCom shares. ``Do I think that this can turn them around? It's way too early to tell.'' Spokespeople for the four banks, which are all existing lenders to WorldCom, declined to comment. The amount each bank will lend hasn't been decided, the people familiar said. Some of WorldCom's banks have asked it to pledge assets in return for the loan. Job Cuts, Asset Sales A WorldCom spokesman, Brad Burns, said the company is planning to cut an unspecified number of jobs to lower costs. Some analysts estimate the reductions may total 16,000 out of WorldCom's workforce of 80,000. They would be in addition to a 7 percent reduction in staff since March 2001, after lower calling prices and less spending from customers hurt sales. John Sidgmore, who replaced Bernard Ebbers as chief executive officer in April, also is considering asset sales to reduce WorldCom's junk-rated debt. The company announced today it will exit a business that sells wireless service using rivals' networks. bloomberg.com

To: tejek who wrote (10479)	6/5/2002 6:46:54 PM
From: Rock_nj	Read Replies (2) \| Respond to of 11568

WorldCom Says to Exit Wireless Resales, Cut Jobs Wednesday June 5, 6:24 pm Eastern Time Reuters Technology Report CLINTON, Miss. (Reuters) - WorldCom Inc., the struggling long-distance telephone and data services company, on Wednesday said it will exit its unprofitable wireless resale business and cut some jobs as it tries to reduce expenses and ward off a cash crunch. ADVERTISEMENT "Slowing market growth, intense pricing pressure and acquisition cash requirements have rendered WorldCom's position as a pure reseller unprofitable," the Clinton, Mississippi- based company said. The unit generates about $1 billion in revenue and nearly 2 million customers. WorldCom (NasdaqNM:WCOM - News; NasdaqNM:MCIT - News) in April said it may sell up to $2 billion in assets, including the wireless resale business, as well as its stakes in Latin American telecom companies Avantel of Mexico and Embratel (NYSE:EMT - News) of Brazil. Proceeds from any sales would be used to pare WorldCom's debt load, which totaled $27.9 billion at the end of the first quarter. WorldCom has been in the wireless business for more than five years, reselling services from the top two carriers in each market. It initially entered that business as a first step toward becoming a facilities-based wireless carrier, but that did not occur. The company, which already has received interest from several major wireless carriers, said it will take several months to exit the business. Some of WorldCom Wireless' 2,200 employees will be fired shortly, while the remainder will continue operations in the interim period. USA Today on Wednesday said the company plans to cut 16,000 workers, or about 20 percent of its work force, in a move to lower costs and preserve cash. A WorldCom spokesman said the company plans "to align costs with revenue," but the timing and scope of any job cuts had not been determined. The company earlier this year said it would cut about 3,700 jobs, or 4 percent of its work force. It currently has about 80,000 employees. The company last month said it would scrap its tracking stocks and dividend payments, saving $284 million a year. WorldCom faces a regulatory inquiry into its accounting practices and personal loans it made to former Chief Executive Bernie Ebbers. WorldCom Group's stock was removed from the Standard & Poor's 500 Index, and credit ratings on its $30 billion in debt were slashed to "junk" status. The company is in talks to secure $5 billion in new funding and restore investor confidence after its stock plunged 90 percent this year. It expects to have the financing in place this month. The shares of WorldCom Group, the company's main data and Internet business, shed 3.6 cents to close at $1.41. The shares of MCI Group, its consumer long-distance telephone business, lost 2 cents to close at $2.53 on Nasdaq.