WorldCom may file for Chapter 11 next week

Troubled telco WorldCom may file for Chapter 11 bankruptcy protection next week, according to reports from the US press.

WorldCom has refused to comment on the speculation, but analysts predict that it will use Chapter 11 protection to restructure its debt and get the company running again.

The firm is facing a $3.85bn accounting scandal. Any bankruptcy protection filing by the $104bn company would eclipse the Chapter 11 protection status sought by collapsed energy trader Enron.

It is unlikely that the users of the network will notice any difference after the bankruptcy protection filing.