Worldcom – USA most egregious bankruptcies – #3

USA most egregious bankruptcies - Worldcom
USA most egregious bankruptcies – Worldcom

WorldCom was US No.2 long-distance company before it filed for Chapter 11 bankruptcy protection in 2002, after revealing it had improperly booked $3.8 billion in expenses.

WorldCom operated the world’s largest internet network, with more than 60,000 employees, covering more than 65 countries.

CEO John Sidgmore stated: “We will use this time under reorganization to regain our financial health and focus, while operating with the highest integrity, we will emerge from Chapter 11 as quickly as possible and with our competitive spirit in tact.

The company changed its name to MCI and was later acquired by Verizon Communications.

Former CEO, Bernie Ebbers was convicted of securities fraud, conspiracy, and filing false documents and was sentenced to 25 years in prison.