WorldCom Appoints AlixPartners Executives to Manage Restructuring

CLINTON, Miss. -- Worldcom Inc. (WCOEQ), which filed for bankruptcy-court protection earlier this month amid an accounting scandal that had destroyed its access to capital, named two executives from corporate restructuring firm AlixPartners LLC to to help manage its reorganization.
The nation's second-largest long-distance provider said Monday that it appointed John S. Dubel chief financial officer and Gregory F. Rayburn chief restructuring officer, both of whom will report directly to John Sidgmore, Worldcom's president and chief executive. Mr. Sidgmore took over after high- profile CEO Bernard Ebbers was ousted in April.

The appointments are subject to approval from the bankruptcy court.

Messrs. Rayburn and Dubel will manage WorldCom's restructuring, including negotiating with creditors, evaluating proposals, overseeing the development of financial projections, disseminating information to stakeholders and overseeing the sale of any noncore assets.

WorldCom hopes to sell nonessential assets and focus on key businesses so that it can emerge from bankruptcy protection as a viable company.

Mr. Rayburn joined AlixPartners in August 2000. Most recently he acted as both chief executive and chief restructuring officer in the just-completed restructuring of Sunterra Corp. Formerly, he was the president and co-founder of the Capstone Group, a private investment partnership.

Mr. Dubel joined AlixPartners this year. Before that, he ran his own turnaround firm.

Mr. Rayburn has extensive experience in operations, financial analysis, mergers and acquisitions and valuations. Mr. Dubel's restructuring experience includes reorganizations and cost reductions, financial department restructurings, and divestitures in telecom and high technology as well as other industries.

"These appointments are an important step in moving WorldCom forward," Mr. Sidgmore said in a statement Monday. "In a short time, we have secured two of the most highly qualified and experienced restructuring executives available," he said.

"Their task will be to support our efforts to emerge from reorganization as quickly as possible with a healthy business focused on its core capabilities. During this process, WorldCom will continue to provide world-class services to our customers," Mr. Sidgmore said.

WorldCom has more than 20 million customers and 60,000 employees world-wide.

In its bankruptcy filing last week, Worldcom, parent of MCI, listed assets valued at $107 billion, making the bankruptcy filing the largest in U.S. corporate history.

Scott Sullivan, the fired WorldCom chief financial officer, and David Myers, the company's former controller, are expected to face a variety of charges by the Justice Department, including securities, mail and wire fraud, for their roles in WorldCom's accounting scandal.

The Justice Department also is considering indicting WorldCom as a corporation, a move that could threaten the company's survival.

-Judy Bocklage; Dow Jones Newswires; 509-620-7811




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I don't think the regulators will go along. Too many jobs at stake, also national security.

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If you cross the 30% gain threshold, get your principal back out.

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Delisting doesn't mean that the security is null. It just means the company has ceased to meet the specified requirements to trade as a listed stock on the exchange. I am sure there will be a flurry of OTC trading as soon as the ticker changes to .OB

There's so many people with positions right now that there will surely be a lot of activity. HOWEVER!!! It will be panic selloff from the retail sector who.... AHEM... got in too late.

A security can trade even though it's not exchange listed. It's just a pink sheet with the CUSIP on it. I buy and sell .OB stocks all the time. Once again, it's a completely different ballgame with over the counter so do your research.

I will refrain from telling everyone that I told you so though because I know a lot of guys threw down coin on this stock (EVEN THOUGH I WAS SAYING NO AFTER LAST MONDAY).

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Give us what'll be the next big thing and remind us to listen to you[;)]