ASHBURN, Va. -- WorldCom, Inc. (WCOEQ, MCWEQ) today filed its proposed Plan of Reorganization with the U.S. Bankruptcy Court for the Southern District of New York, delivering on the company's "fast track" Chapter 11 reorganization schedule. Additionally, the company announced the appointment of Robert T. Blakely as its new CFO, a brand name change to MCI, and the relocation of its corporate headquarters to Ashburn, Va. "We committed to file our Plan of Reorganization by April 15 and we delivered," said MCI's Chairman and CEO Michael Capellas. "Today's accomplishments are a tribute to our management team, advisors and major creditor constituencies. It is also an example of the tremendous will-to-win of the MCI employees, who worked with an outrageous sense of urgency." "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," said Capellas. "From this day forward, our focus will be on serving our customers, strengthening our core assets, executing on our three-year business plan, and solidifying our position as the industry's leading Internet Protocol communications provider." Proposed Plan of Reorganization
Representatives of the company's senior noteholder groups have agreed upon the economic terms of the proposed Plan. These groups represent a majority of the company's Official Committee of Unsecured Creditors that hold in excess of 90 percent of the dollar 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, respectively, and reflect a settlement of various litigation arguments each group could have asserted. As part of the Plan, the company also agreed to a proposed capital structure for the reorganized company that will include approximately $3.5 billion-$4.5 billion in debt, net of cash. New CFO, Robert T. Blakely, Appointed
MCI appointed Blakely, who has served as Executive Vice President and Chief Financial Officer of both Tenneco Inc. and Lyondell Chemical, to fill its Chief Financial Officer position. Blakely recently competed a four-year appointment as a member of the Financial Accounting Standards Advisory Council, which advises the Financial Accounting Standards Board on issues relating to full and complete financial reporting and disclosure. He also served as a founding member of Standard & Poor's Issuer Advisory Council. Moving Forward with MCI Brand and Strategy
As part of its efforts to move forward, the company is unifying under a new corporate banner - MCI. The company's wholesale business will be sub-branded as UUNET. "We wanted a new name that would make us proud," said Capellas. "Once we evaluated our branding options, we realized that we already had a winner - MCI. With established brand equity and a name that stands for integrity, innovation and value, we're ready to regain our leadership position in the marketplace." WorldCom Inc.
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