MCI shareholder revolt grows

An independent group of WorldCom stockholders has claimed that over 4,500 customers of WorldCom/MCI intend to abandon the company over its planned bankruptcy reorganisation.

The group explained that thousands of shareholders/customers had vowed to cancel their long-distance or internet service if the company's controversial bankruptcy reorganisation plan is approved.

"There seems to be a groundswell of anger at big money's use of the bankruptcy process to take assets from individual stockholders," said Neal Nelson, a spokesman for the WorldCom/MCI Stockholders Group.

"We are receiving over 1,000 emails a day indicating that people intend to cancel their WorldCom/MCI service if the current bankruptcy plan is approved.

"The reorganisation would essentially eliminate the company's debt, but it would also transfer 100 per cent ownership of the 'new MCI' to the current bondholders, and leave the current WorldCom and MCI stockholders with nothing."

The Stockholders Group favours an alternative plan with partial debt reduction, where the bondholders would get part ownership of the new company and the current stockholders would be given some equity in the new firm.

"Through total domination of the bankruptcy committees, the bondholders have prevented consideration of a compromise plan," said Nelson.

"The only avenue left for effective protest against this plan is to threaten a boycott of the 'new MCI'."