WorldCom CEO John Sidgmore has said that WorldCom will continue to trade as normal despite filing for Chapter 11 bankruptcy protection. The troubled telecommunications company filed for bankruptcy protection this week after it confessed to hiding billions in expenses through misleading accounting practices.
WorldCom’s statement that business will continue as usual is a move designed to quell fears among its customers that the company’s bankruptcy would result in a disruption of services. WorldCom’s customers have been approaching rivals such as Sprint, AT&T and SBC Communications ever since the accounting fiasco became public knowledge.
WorldCom also said that it has secured over $2 billion in financing to help it though the planned period of reorganization and restructuring. The company has also sought the services of a specialist restructuring team to help guide it through the process. WorldCom is hoping that it will emerge from bankruptcy protection sometime within the next 12 months.