The hits just keep on coming at WorldCom Inc. The latest: the company's securities have been delisted from the Nasdaq.
The Nasdaq Listing Qualification Panel has decided that in light of WorldCom's recently bankruptcy filing and the pending restatement of financial results for 2001 and the first quarter 2002 the company's securities would be delisted today. The Nasdaq requires companies to stay current on their periodic filings with the Securities and Exchange Commission. The ruling affects WorldCom's WorldCom Group Common Stock, MCI Group Common Stock and 8 percent Cumulative Quarterly Income Preferred Securities, Series A. WorldCom's stock last traded at 83 cents a share.
WorldCom expects its securities will trade on the Pink Sheets under WCOEQ, MCWEQ and MCPEQ.
Yesterday, WorldCom announced it had appointed Gregory Rayburn as chief restructuring officer and John Dubel as chief financial officer. The men are tasked with managing WorldCom's reorganization, including negotiating with creditors, evaluating proposals, overseeing financial projections and overseeing the sale of non-core assets.
Rayburn and Dubel will report to WorldCom President and CEO John Sidgmore.
WorldCom filed for Chapter 11 bankruptcy protection last week, after an admission a few weeks ago that it had misreported nearly $4 billion in expenses.
In response to a recent Wall Street Journal report indicating that the U.S. Department of Justice is considering indicting the company for fraud, WorldCom said it is cooperating with state and federal law enforcement, and is unaware of any intention by authorities to seek an indictment against the company.
"We have been advised the (state and federal law enforcement) authorities are satisfied with WorldCom's cooperation to date," WorldCom spokesman Brad Burns said in a statement.
Rumors of possible WorldCom indictments followed the arrests of former Adelphia Communications Corp. executives, including John, Timothy and Michael Rigas. Adelphia also is under the watchful eye of the SEC.