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Posted: 7/29/2002 5:45:12 AM EDT
This sounds like really good news, and this mornings indicators are up, with pre-market trading at .20 a share. FWIW: I just pulled this info from NASDAQ.
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 Copyright (c) 2002 Dow Jones & Company, Inc. All Rights Reserved
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Link Posted: 7/29/2002 5:50:51 AM EDT
and... some not so good news..... [i]Two weeks into its bankruptcy and reorganization, WorldCom Inc. still can't seem to avoid attracting more trouble. After company leaders cautioned that WorldCom cannot afford stifling new demands from its suppliers if it is to avoid service disruption during reorganization, RBOCs (Regional Bell Operating Companies), which provide WorldCom with last-mile connections to many of its customers and aspire to compete with it in long-distance service, sought to begin tightening the noose. According to sources, the long-distance company's struggle for survival presented the RBOCs with an opportunity to push federal regulators to start demanding upfront payments for local connections and to force WorldCom to fork over hefty security deposits, even as the Clinton, Miss., carrier is mired in debt.[/i] [url]http://www.eweek.com/article2/0,3959,425490,00.asp[/url]
Link Posted: 7/29/2002 5:56:50 AM EDT
I think they will be able to get things turned around and on track, as long as they have dumped most or all of the management that botched things in the first place. Unfortunately, my department isn't considered a core asset, and is on the chopping block. If we survive long enough to be bought, the future of the staff depends on who is buying (whether or not they have their own engineering department). I still don't understand all of the activity around the stock, though. I thought that most stocks were worthless after bankruptsy, and indeed the company has even stated that shareholders will probably lose everything during the process. I have much to learn.
Link Posted: 7/29/2002 5:58:15 AM EDT
It has opened at .21, after closing at .19 on Friday, and has been at .22 off and on this morning. [;)]
Link Posted: 7/29/2002 5:59:08 AM EDT
I don't think the regulators will go along. Too many jobs at stake, also national security.
Link Posted: 7/29/2002 6:03:37 AM EDT
Originally Posted By liberty86: I don't think the regulators will go along. Too many jobs at stake, also national security.
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Correct! Also, Worldcom is the largest structural backbone of the internet, so if they go, then so does a vast majority of the net, until the pieces are picked up and put back together by a competitor. Just imagine if they were to say "Screw it, we're pulling the plug!"... That would be one hell of a serious threat, but also within their legal boundaries AFAIK. I would like to get Hielo's input on this, this morning.
Link Posted: 7/29/2002 6:06:01 AM EDT
[Last Edit: 7/29/2002 6:09:06 AM EDT by antiUSSA]
[s]According to NASDAQ, they have now spiked at .30 a share this morning...[/s] [:D] Ooops, it appears to have been an error on the NASDAQ server, but "BuyandHold" is now showing the same .30 spike...
Link Posted: 7/29/2002 6:11:19 AM EDT
If you cross the 30% gain threshold, get your principal back out.
Link Posted: 7/29/2002 6:18:13 AM EDT
Originally Posted By BenDover: If you cross the 30% gain threshold, get your principal back out.
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Yep.......
Link Posted: 7/29/2002 6:31:59 AM EDT
I'm not a expert at this telecommunication stuff, but most of their "non-essential" assets are pretty much worthless, and don't even come close to paying even part of the debt their crditors are owed. My take on this is that most of the company will probably be dis-mantled/dismembered along with some essential assets, and the new WorldCom will be a shawdow of its former self.
Link Posted: 7/29/2002 6:40:25 AM EDT
Its up 4 cents today so far. Almost a 20% increase. Aviator [img]www.milpubs.com/aviator.gif[/img]
Link Posted: 7/29/2002 6:52:12 AM EDT
[Last Edit: 7/29/2002 6:52:41 AM EDT by CAPITALIST]
Are any of you guys into Worldcom's MCI division (mcweq) What do you think? Its doing quite well today
Link Posted: 7/29/2002 9:13:25 AM EDT
BTT
Link Posted: 7/29/2002 11:17:58 AM EDT
Link Posted: 7/29/2002 11:20:08 AM EDT
Link Posted: 7/29/2002 2:35:25 PM EDT
Well at least we thought this stock was a good deal[BD][BD][BD][BD]
Link Posted: 7/29/2002 2:58:02 PM EDT
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).
Link Posted: 7/29/2002 5:00:48 PM EDT
Originally Posted By BenDover: 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[;)]
Link Posted: 7/29/2002 5:51:59 PM EDT
Originally Posted By CAPITALIST:
Originally Posted By BenDover: 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[;)]
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I ain't a broker. I am just some guy who pays attention and farts around in the market. You can bet your ass this bubble gain isn't going to stick around. Market will dive before the week's out again. There's nothing to sustain it right now. Everyone is waiting with baited breath for the bombs to start falling on Baghdad again. What does the market do when that sheite starts happening? For long positions right now, I have been playing with defense contractors. Scientific Atlanta is interesting because it took a hit with some Adelphia fallout. General Dynamics is interesting too. I have been accumulating GE for a while. Also watch for the forthcoming Time Warner cable spinout from AOL.
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