WorldCom names replacement CFO

WorldCom, the bankrupt and disgraced telecommunication company, has poached two executives from the corporate restructuring...

WorldCom, the bankrupt and disgraced telecommunication company, has poached two executives from the corporate restructuring company, AlixPartners, to assist the ailing company with its restructuring and financial difficulties.

John Dubel has been named chief financial officer and Gregory Rayburn has been named chief restructuring officer, WorldCom said. Both will report directly to John Sidgmore, WorldCom president and chief executive officer.

Rayburn and Dubel will manage WorldCom's restructuring, including negotiating with existing creditors, evaluating proposals, overseeing the development of financial projections, disseminating appropriate information to stakeholders and overseeing the sale of any non-core assets, WorldCom said.

The appointments are subject to approval from the bankruptcy court, the company said.

WorldCom filed for protection under Chapter 11 of the US Bankruptcy Code on 21 July, after it was forced into issuing a $4bn (£2.6bn) restatement of its financial reports because of questionable accounting practices.

WorldCom fired its former chief financial officer, Scott Sullivan, when its accounting irregularities were first reported in June. Its previous president and chief executive officer, Bernard Ebbers, resigned in late April in the face of mounting debts, a US Securities and Exchange Commission (SEC) investigation and layoffs.

Also in June, the SEC filed a lawsuit against the Clinton company, charging WorldCom with fraud and asking a court to block the destruction of documents and the payment of extraordinary bonuses to executives.

WorldCom has debt estimated at $32.8bn (£21bn), several thousand corporate customers, serves around 20 million consumers, runs the world's biggest Internet network and has 60,000 employees worldwide.

Read more on IT risk management

Start the conversation

Send me notifications when other members comment.

Please create a username to comment.

-ADS BY GOOGLE

SearchCIO

SearchSecurity

SearchNetworking

SearchDataCenter

SearchDataManagement

Close