US court approves WorldCom bankruptcy motion

Troubled telecommunications company, WorldCom has announced that the US Bankruptcy Court has approved its bankruptcy motion.

WorldCom filed for chapter 11 bankruptcy at the weekend following its announcement last month, that it had wrongly appropriated $3.85bn.

The court's approval of the motion will now allow WorldCom to raise interim funds to continue its day-to-day operations.

So far, $750m has been approved for this purpose.

WorldCom owes European banks over $3.72bn, very little of which is likely to be recovered.

Amongst its biggest creditors are JP Morgan Trust Co., Mellon Bank and Citibank.

Amidst the bankruptcy frenzy, WorldCom has assured its 20 million customers that its services would not be affected and operations will continue as normal.