Telecom giant files reorganization plan

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Tuesday, April 15, 2003 | 11:26 a.m.

JACKSON, Miss. -- WorldCom is changing its name to MCI, moving its headquarters from Mississippi to Virginia, and planning to pay its creditors about 43 cents on the dollar for the $40 billion they loaned the company, U.S. Bankruptcy Court documents filed Monday show.

The company plans to keep its Clinton, Miss., operation open, but simply as one of its many regional offices. The company's new headquarters will be in the Washington suburb Ashburn, Va., where MCI is based.

In its plan, WorldCom estimates that it will be worth about $13 billion, $8 billion in stock that will go to bondholders and up to $5.5 billion in debt that will go to other creditors. Those who hold WorldCom's current 3 billion shares of stock will get nothing.