Troubled telco WorldCom announced today that it will change its name back to MCI as it files for 'fast track' Chapter 11 reorganisation with the US Bankruptcy Court for the Southern District of New York.
MCI chairman and chief executive Michael Capellas explained that the firm had "worked with an outrageous sense of urgency" to deliver the Chapter 11 filing by today's deadline.
"We committed to file our Plan of Reorganisation by 15 April and we delivered," he said.
"Our company has demonstrated a new fast and focused attitude and a commitment to emerge from Chapter 11 later this year as a leaner, stronger competitor."
Previously called MCI WorldCom, it dropped the MCI tag in late 2000. Now the company has returned to its naming roots in a effort to shrug off WorldCom's poor image.
Capellas said that, moving forward, the company will focus on serving its customers, strengthening core assets, executing on its three-year business plan, and solidifying its position as the industry's leading IP communications provider.
According to MCI, its noteholder groups have agreed on the economic terms of the proposed restructuring plan.
These groups represent a majority of the company's Official Committee of Unsecured Creditors that between them hold more than 90 per cent of the total value of the claims in the company's Chapter 11 cases.
The terms of the proposed plan substantively consolidate the estates of the WorldCom and Intermedia entities, and aim to settle the various litigation arguments that each group could have asserted.
As part of the plan, MCI also proposed capital structure for the reorganised company that will include from $3.5bn to $4.5bn in debt, net of cash.
At the same time, the company announced the appointment of Robert T. Blakely as its new chief financial officer. Blakely has served as executive vice president and chief financial officer at Tenneco and Lyondell Chemical.
MCI has promised to file a Disclosure Statement later today explaining the details of the proposed plan at www.mci.com/.
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