Insolvency RecordCASE FILES

United States ยท Telecommunications

WorldCom, Inc. insolvency: proceedings and outcome

WorldCom, a US long-distance telecommunications provider based in Clinton, Mississippi, filed for Chapter 11 in the US Bankruptcy Court for the Southern District of New York on 21 July 2002 following an accounting scandal. Its plan became effective on 20 April 2004 and the company continued as MCI, which Verizon Communications acquired in January 2006.

Emerged from proceedings WorldCom's Chapter 11 plan became effective on 20 April 2004 and the company continued as MCI, which Verizon acquired in January 2006.2,3

First filing21 July 2002
Proceedings1

Wikipedia reports the company carried 30 billion USD in debt before the disclosures. Not a balance sheet figure from the filing. Figures as of 2002.4

Proceedings

TypeCourt or bodyCaseFiled
Chapter 111,4US Bankruptcy Court for the Southern District of New York, United States (New York)21 July 2002

Timeline

  1. The US Securities and Exchange Commission filed civil fraud charges against WorldCom.4
  2. WorldCom and substantially all of its active US subsidiaries filed for Chapter 11, with up to 2 billion USD of debtor-in-possession financing sought. Non-US subsidiaries were not included.1,4
  3. The Chapter 11 plan became effective and the company continued as MCI, Inc., successor to WorldCom.2,3
  4. Verizon Communications acquired MCI. Its network assets became part of Verizon Business.3,4

Related actions

  1. US Securities and Exchange Commission. Filed civil fraud charges against WorldCom.4

Sources

  1. US Securities and Exchange Commission (EDGAR), WorldCom press release on Chapter 11 filing (Form 8-K Exhibit 99.1) (21 July 2002)
  2. US Securities and Exchange Commission (EDGAR), MCI, Inc. Form 8-K Exhibit 99.2 (credit agreement amendment referencing plan effective date) (23 April 2004)
  3. Verizon, WorldCom
  4. Wikipedia, WorldCom scandal (27 October 2026)