WorldCom: $9 Billion And Counting

WorldCom admits to another couple of billion in fraudulent accounting as it tries to maeuver a deal with the SEC

November 5, 2002

1 Min Read

CLINTON, Miss. -- WorldCom, Inc. (Nasdaq: WCOEQ - News) today issued the following statement regarding the likelihood that additional restatements of past accounting will take place.

"In settlement discussions with the Securities and Exchange Commission (SEC), WorldCom advised the agency that, based on very preliminary reviews of past accounting, it expects an additional restatement of earnings which, when added to WorldCom's past restatements, could total in excess of $9 billion.

"The company is continuing to finalize its review. Once the review is complete it will make the final information public.

"Additionally, the company said that restatements of past accounting have no impact on its ability to continue to provide service to its customers nor on its ability to emerge from bankruptcy protection, which it expects to take place in mid-2003. The company continues to possess more than $1 billion of cash on hand and debtor-in-possession financing of $1.1 billion, which it has not tapped."

WorldCom Inc.

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