WorldCom CEO expresses optimism

Not as bad as it looks, honest...

WorldCom CEO John Sidgmore has assured investors the company has a good chance of escaping bankruptcy. However, he added the beleaguered telco would be a more attractive proposition to lenders if it applied for Chapter 11 bankruptcy protection. Making his first public appearance since the company admitted it had fraudulently falsified $3.8bn in expenses, Sidgmore said he had received assurances from banks that they would not demand increased payments on the outstanding $35bn debt. According to the FT, Sidgmore said he hopes to raise $1bn in immediate funding and is expecting two debt restructuring proposals from lenders this week. However, banks are expected to hold off on further lending until the company is placed in Chapter 11.