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WorldCom faces bankruptcy

WASHINGTON JULY 3. The value of WorldCom's assets, once estimated at $104 billion, may have fallen to as low as 43-8 billion as the telecom giant confronts the largest bankruptcy in U.S. history, a media report said here today.

The drop in the value comes following disclosures that the company's accounting misrepresented $3.8 billion in expenses to show inflated earnings, the Wall Street Journal said. Of the stated assets of $104 billion, about $50 billion come from goodwill and other intangibles.

Those are discounted entirely and the main exception may be brands such as WorldCom's MCI consumer unit, which have a discernible market worth.

WorldCom had $35.2 billion in revenue last year, the world's biggest Internet network, thousands of corporate contracts and 20 million consumer customers.

— PTI

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