1. WorldCom Update: Company Files Bankruptcy
WorldCom has filed Chapter 11 bankruptcy as part of a 9-12 month reorganization plan that aims to trim 75% of its $30 million debt load. Recently, the company negotiated $2.75 billion in new, secured financing. The U.S. Bankruptcy Court in the Southern District of New York has already approved $750 million in interim financing, sufficient to cover operating expenses, and has scheduled a hearing for September 4 for final approval of the additional $2 billion in loans. The bankruptcy, which does not include international operations, will not impact any of WorldCom’s services.
The Department of Justice has appointed an independent examiner to investigate for mismanagement, irregulatires and fraud. The examiner will report back to the DOJ after 90 days.
As part of the reorganization, the company is expected to compensate creditors with interest in the company, while leaving shareholders with no value in their investments. WorldCom has reached an agreement with creditors to abstain from selling any of its subsidiaries until October.
With $107 billion in assets and $65 billion in liabilities, the WorldCom bankruptcy is the biggest bankruptcy in U.S. history.
3. Telus Building VoIP Network Throughout Canada
Telus, a leading telco in Canada, has announced that it is in the first phase of a project to convert its network to IP. The first phase is scheduled for completion in Q’2 of next year.
5. Best Buy Campus to Deploy Nortel’s VoIP Solution
Best Buy has commissioned HickoryTech to deploy a VoIP network using Nortel’s gear to connect 7,500 employees over a 42.5 acre corporate campus located in Richfield, Minnesota. The solution will utilize Nortel’s Succession Enterprise, and will feature Nortel’s Meridian IP-PBX.
Best Buy has more than 1,900 retail consumer electronic stores in the U.S., Canada, Puerto Rico, and the U.S. Virgin Islands.