WorldCom warns of another restatement


WorldCom warns of another restatement

Telecommunications service provider WorldCom expects to make an additional restatement of its past financial results that might bring the total of all its adjustments to more than $9bn (£5.7bn), the company warned yesterday.

The company has restated past results twice already this year, making adjustments that reduced its pretax profit by about $7.68bn (£4.9bn) for periods in the years 2000, 2001 and 2002. The company faces both criminal investigations and civil suits.

The US Securities and Exchange Commission received the warning during settlement discussions, a WorldCom statement claimed.

The company said restatements of past earnings will not affect WorldCom's ability to continue providing services or to emerge from bankruptcy in mid-2003.

WorldCom and the SEC have presented to the federal judge overseeing the case a plan for settlement of the SEC's charges against the company. A deal might be announced within a week or two, said the report, released yesterday.

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