Washington, Nov 01: A US judge has approved the reorganisation plan of Worldcom Inc, eliminating USD 35 billion in debt from the company's balance sheet in the biggest bankruptcy filing in the country's corporate history. Bankruptcy judge Arthur J. Gonzalez yesterday approved the company's two-pronged strategy for stabilising the company, which was laid out by chief executive Michael D. Capellas.
Worldcom, which has been unofficially operating under he name of its long-distance subsidiary MCI, plans to continue competing against the big regional phone companies by offering a package of unlimited local and long-distance service to residential customers for about USD 50 a month.
It will also soon launch a new advertising campaign offering its residential high-speed Internet service.
The telecommunications giant, however, still faces a huge challenge in reversing a steep revenue decline while operating in an increasingly competitive industry, a newspaper noted.
Capellas also spoke of Worldcom planning to offer business customers new services. Capellas, a former computer executive, said the borders are now blurring between a network and the devices that are plugged into it, including computers and telephones, and that Worldcom has a role in leading the technological shift. Bureau Report