Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Oeconomicus who wrote (10992)	6/28/2002 3:58:09 AM
From: tejek	Respond to of 11568

How much do you want to bet that money's gone or hidden some place? I'll take that bet. The money went straight to the banks that originally lent Ebbers the money to buy WCOM stock, loans that were secured by a WCOM guaranty. Yes, after I posted I remembered he used the money to buy WCOM shares. So how much you want to bet he won't pay back the loan, now that his shares may be worthless? ;~)) Pretty much what I've been saying for the last two days. Everyone here should really read these WSJ articles. Infinitely better journalism, BTW, than any of the Reuters, The Street.com, CBS Marketwatch or any other online sources covering this story. No question..........the other media are making this into another ENE. At least so far, I do not see that as being true. I do think this fiasco is making it harder for WCOM to stay afloat. Its credibility in the financial markets has only worsened if that were possible. I have to feel a little sorry for Sidgmore. I suspect he didn't have a clue re the accounting errors. However, I don't feel too sorry. PS: Wonder who has the movie rights. Steven Speilberg........it will be about ET and Ebbers meeting on the moon after he's been banished from earth. ted

To: Oeconomicus who wrote (10992)	6/29/2002 3:21:35 PM
From: Darren DeNunzio	Read Replies (1) \| Respond to of 11568

What do the banks really face...Smoke and Mirror (IMO) from latest 10-Q As of March 31, 2002, our total debt was $30.2 billion and we had available liquidity of $10.2 billion under our credit facilities, which are described in our Annual Report on Form 10-K for the year ended December 31, 2001, and from available cash. As of January 1, 2001, the MCI group was notionally allocated $6.0 billion of WorldCom's debt and the remaining outstanding debt was notionally allocated to the WorldCom group. WorldCom management has a wide degree of discretion over the cash management policies of both the WorldCom group and the MCI group. Cash generated by either group can be transferred to the other group without prior approval of WorldCom's shareholders. Due to the discretion possessed by management over the cash management policies of both groups, including the timing and decision of whether to finance capital expenditures, it may be difficult to assess each group's liquidity and capital resource needs, and, in turn, the future prospects of each group based on past performance. For the first quarter of 2002, the MCI group generated sufficient cash to pay $71 million for dividends on MCI group stock and to repay $9 million of its allocated notional debt. As of March 31, 2002, we had no amounts drawn against our credit facilities which include the following: o $1.6 billion revolving credit facility that expires June 8, 2006; o $2.65 billion 364-day revolving credit facility that expires June 7, 2002 with a one-year conversion feature; and o $3.75 billion revolving credit facility that expires June 30, 2002. We intend to replace our $2.65 billion 364-day revolving credit facility and we do not intend to renew the $3.75 billion revolving credit facility. Additionally, we are working with our banking group to increase the size of our facilities in exchange for security. These negotiations, if successfully completed, will result in $5.0 billion or more of availability under credit facilities which would mature between 2005 - 2006. We remain on schedule in these negotiations and expect to complete the process over the next few weeks. It is anticipated that in the interim, we will draw against the $2.65 billion revolving credit facility in order to preserve the one-year conversion feature on the facility. However, it is intended that the amounts drawn under the $2.65 billion revolving credit facility will be repaid upon completion of the new credit facility agreements. ... Geeesh!