The end of WorldCom?? How does Chapter 11 work?
Thread Starter
Joined: Jun 2001
Posts: 1,290
Likes: 0
The end of WorldCom?? How does Chapter 11 work?
If WorldCom files for Chapter 11, would WorldCom still be responsible to repay it's debt and the lawsuits by the investors? Investors are asking for their money back, but with Chapter 11, WorldCom doesn't have to pay it right?
Joined: Jun 2002
Posts: 30,028
Likes: 5,431
From: Bondville
In a chapter 11 case stockholders are about the last to good paid and usually there is no money left for them. Unfortunately I learned this the hard way but it is a lesson I will not forget. You may want to get what you can now if u are still able to I believe they are filing Mon. Good luck
Registered User
Joined: Oct 2000
Posts: 251
Likes: 0
From: tupelo
anyone that has mci/ldds (worldcom) as their long dx carrier should not pay their phone bill. tell them you are having accounting problems........................................
eye for an eye type of thing................
eye for an eye type of thing................
Trending Topics
Joined: Jun 2002
Posts: 30,028
Likes: 5,431
From: Bondville
Spike I was thinking the same thing as I was paying my mci bill last week one charge was $17.55 for 58 minutes but if I didn't pay it that would just mess up my credit however I am going to switch after this bill!
Joined: Jan 2001
Posts: 3,004
Likes: 0
From: Bowie
Worldcom's creditors get paid in order of priority:
IRS
Employees
...
Banks
...
Equipment suppliers
...
...
..
..
.
.
.
.
.
.
.
Stock Holders
The IRS and Employees get 100% of what is owed to them. It's up to the courts to decide how many pennies per dollar to repay the remaining creditors. Usually all of the old stock is trashed and a new group of investors pay to "buy" the company out of bankruptcy. New stock is issued and because the Debt load is reduced or eliminated, the company can begin to grow again, buy more equipment, etc.
Meanwhile the company operates normally and the court pays it's new bills on time.
Our CEO thinks that several big telecom guys will need to go bankrupt to shed there debt load before the telecom sector will recover.
IRS
Employees
...
Banks
...
Equipment suppliers
...
...
..
..
.
.
.
.
.
.
.
Stock Holders
The IRS and Employees get 100% of what is owed to them. It's up to the courts to decide how many pennies per dollar to repay the remaining creditors. Usually all of the old stock is trashed and a new group of investors pay to "buy" the company out of bankruptcy. New stock is issued and because the Debt load is reduced or eliminated, the company can begin to grow again, buy more equipment, etc.
Meanwhile the company operates normally and the court pays it's new bills on time.
Our CEO thinks that several big telecom guys will need to go bankrupt to shed there debt load before the telecom sector will recover.
Thread
Thread Starter
Forum
Replies
Last Post