WorldCom set to file for bankruptcy

WorldCom is planning to file for bankruptcy protection, according to its chief executive.

John Sidgmore says the move will take place in the US Bankruptcy Court in Manhattan.

He says the first priority is to stabilise the company financially.

Mr Sidgmore says the company will look at selling some of its non-core assets, and which "potentially includes some of our Latin American facilities" and wireless resale business.

WorldCom admitted last month that it falsely accounted for $3.85bn (€3.81bn) in expenses, which had the effect of inflating profits.

That same day, it sacked chief financial officer Scott Sullivan, who was subsequently accused by the company's auditor, Arthur Andersen, of withholding crucial information about WorldCom's bookkeeping.

WorldCom also announced that it would lay off 17,000 workers, or 20% of its global work force.

Even before the hidden expenses were exposed, WorldCom was engulfed in financial turmoil.

Its stock price traded as high as $64.50 (€63.9) in June 1999. However, shares of WorldCom and other telecommunications companies have slid ever since as the dot-com bubble burst and other market forces caused an industry-wide implosion.