MCI Continues Cleaning Up The Mess

[Zomby Woof]

(CBS/AP) The cleanup of WorldCom's tainted books reveals pre-tax losses of $74.4 billion not previously reflected in the company's financial reports for 2000 and 2001, MCI said Friday in a long-awaited report that wipes away a vast accounting fraud and reflects the plunging value of telecommunications assets.

The financial restatement is likely the biggest in corporate history. But as an adjustment on paper only, it has no direct impact on the renamed telephone company's operations or bid to emerge from bankruptcy.

At the same time, Oklahoma Attorney General Drew Edmondson announced Friday the state has agreed to settle its criminal fraud case against MCI.

Under terms of the agreement, MCI would create 1,600 new jobs in Oklahoma over the next 10 years and has pledged to assist the state in its prosecution of former executives of the company formerly known as WorldCom, he said.


Link: http://www.cbsnews.com/stories/2003/09/03/national/main571417.shtml