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WorldCom Sequence of Events
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The Start of WorldCom
Murray Waldron and William Rector start planning to build a company from the ground up. A discount long distance provider called Long- Distance Discount Service(LDDS). -
Bernard Ebbers
Bernard Ebbers, an investor in LDDS is named chief executive officer. -
Advantage Companies Inc.
Advantage Companies Incorporated made LDDS public in 1993. -
An All Stock Deal
An all stock deal with IDB Communications Group Incorportated led to LDDS aquiring domestic and international networking. -
Changing the Name
LDDS made a deal for $2.5 billion with Williams Telecommunications Group Incorporated. This led to LDDS being called WorldCom. LDDS gained voice and data transmission. -
Merging
WorldCom merged with MFS Communications Company Incoroporated and UUNet Technologies Incoroporated. -
Merging Times 3
WorldCom merged with three other companies. One for $40 billion, one for $1.2 billion, and the last for $1.3 billion. -
WorlCom and Sprint
WorldCom and Sprint agreed to merge in 1999. -
Termination
U.S and European regulators blocked the merge. The agreement to merge WorldCom and Sprint was terminated. -
WorldCom At it Again
WorldCom merges with a company that provides data and Internet Services to businesses. -
The Start of the Fall
WorldCom gets a request for all information related to financial procedures from the U.S Securities and Exchange Commission. -
Cutting
WorldCom starts to cut jobs and staff. Approximately 4% of WorldCom's overall staff. -
Credit Ratings
Standard and Poor's cuts all WorldCom's corporate credit ratings. -
Moody's Investors Service
Moody's Investors Service cuts WorldCom's long term ratings. -
Bernard Ebbers Resignition
Bernard Ebbers resigned when the share prices began to hit the dumps. -
Junk Status
May 9 Moody's cuts WorldCom's debt ratings to junk status. May 10 Standard and Poor's cut WorldCom to junk status. -
Cutting WorldCom
Standard and Poor's cuts WorldCom from its 500 index. -
The Cut
WorldCom cuts 17,000 employees from staff. -
Revealing
WorldCom reveals accounting flaws dating back as far as 1999. -
Security
WorldCom secured $2 billion financing package that the company would then use to their advantage during bankruptcy. -
Bankruptcy Protection
WorldCom filed for bankruptcy protection.
$107 billion in assets.
$41 billion in debt.
Making it the largest file of bankruptcy in U.S history. -
Restructure
WorldCom hires two men to oversee the restructure of the company, Gregory Rayburn and John Dubel. Both from AlixPartners LLC -
Arrests
Chief Financial Officer Scott Sullivan was arrested for playing in the scandal. As was, David Meyers the controller. -
Staff
WorldCom lays off more than 5,000 employees. -
Write Off
WorldCom makes a one-time $78.9 billion write- off. -
Plead
WorldCom's CFO Scott D. Sullivan pleads not guilty to securities and bank fraud. -
WorldCom Civil Charges
WorldCom agrees to pay back $500 million to settle civil fraud charges. -
Federal Judge
A federal judge approves a $750 million settlement. -
Criminal Charges
Attorney General W.A Drew Edmondson files criminal charges against WorldCom Incorporated and six former executives. -
Guilty
Bernard Ebbers found guilty of conspiracy.