WorldCom to re-organise and change name to MCI

WorldCom has announced its reorganisation plan, so that it can emerge from bankruptcy with $3.5bn to $4.5bn in debt.

The plan allows for the company’s creditors to take control of the reorganised company. 90% of the company’s creditors have agreed to the plan which must now be approved by a bankruptcy court in New York

The company is to appoint Robert Blakely as the new Chief Financial Officer. WorldCom is to change its name to MCI, which is the brand of its residential long-distance phone business. It is also to relocate its corporate headquarters to Ashburn, Virginia.

The company will launch a global advertising campaign.

"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", said chairman and CEO Michael Capellas, formerly chairman and CEO of Compaq.