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Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?

To: portage who wrote (21364)	7/1/2003 11:08:43 AM
From: stockman_scott	Read Replies (1) \| Respond to of 89467

Message 19075581

To: portage who wrote (21364)	7/2/2003 11:36:06 PM
From: stockman_scott	Respond to of 89467

In Settlement With S.E.C., WorldCom Is to Give Investors Stock nytimes.com By REUTERS WASHINGTON, July 2 (Reuters) — Shareholders and bondholders who lost money in WorldCom would receive $250 million in common stock of the reorganized company, according to a sweetened settlement the company and the Securities and Exchange Commission filed today. WorldCom, the telecommunications company, which entered bankruptcy protection last summer after being enveloped in an $11 billion fraud scandal, will provide the stock in addition to the record $500 million fine it has agreed to pay to settle S.E.C. fraud charges. "The supplemental relief, if approved, would allow victims of the fraud to share in the potential upside of owning WorldCom common stock when it emerges from bankruptcy," the commission said. The stock would be distributed by an agent appointed by a Federal District Court, according to the commission. Both the bankruptcy court overseeing WorldCom's reorganization and the federal court handling the civil fraud charges against the company would have to approve the sweetened settlement. The $500 million would also be distributed to the victims of the fraud. The rest of the settlement terms with the commission would remain the same, according to the agency. WorldCom, the No. 2 long-distance telephone carrier in the United States, admitted that it had improperly recorded almost $4 billion in expenses as capital spending in June 2002. The S.E.C. immediately filed fraud charges against the company. That number eventually increased to about $11 billion.