WorldCom creditors want broader
financial review
Copyright 2002
Bulletin Broadfaxing Network, Inc.
The Bulletin's Frontrunner...08/12/2002
From LexisNexis
From CED
Broadband Direct, August 12, 2002
The Wall Street Journal (8/12, Solomon) reports,
"Some of WorldCom Inc.'s creditors, concerned that the depths
of the telecommunication giant's accounting scandal haven't been
fully disclosed, plan to push the company for an even broader
review of its financial records."
WorldCom last week "said it planned to expand its financial
restatements to $7.2 billion from $3.85 billion, to reflect improper
accounting that inflated profits as far back as 1999." But
as the company "seeks to reorganize under Chapter 11 bankruptcy-court
protection, some creditors and bankruptcy experts say any uncertainty
about accounting in years prior to 1999 could reduce the price
potential bidders may be willing to pay for WorldCom assets."
Daniel Golden, an attorney at Akin, Gump, Strauss, Hauer &
Feld, who represents WorldCom's unsecured creditor committee in
the bankruptcy case, said he "expects the (creditor's) committee
to push the company to broaden its review." He also said
the committee, "through its own forensic accountant, will
probably conduct its own review of years prior to 1999. He said
he expects the committee to review WorldCom's past accounting
until it can 'run through a couple of clean years.'"
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