MCI’s moment of truth on Monday


After months of drama, he said -she said acqusitions, on Monday, MCI and its enemies will have their day in court. MCI will be at a bankruptcy-court hearing that starts Monday. Many are betting that MCI will get the reorg approval.

bq. “One of the things a judge is required to say is that this reorganization isn’t likely to fail,” says David Skeel, a professor of law at the University of Pennsylvania Law School, who specializes in bankruptcy and isn’t involved in the case. “If there’s a decent chance MCI will be crippled when it comes out because people are so angry over what happened, that’s something that might have to be taken into account.” [ The Wall Street Journal ]

Meanwhile, the Washington Post reports that WorldCom creditors have suspended their routing probe, mostly due to pressure from Department of Justice.

bq. In a filing in federal bankruptcy court yesterday, WorldCom’s creditors committee suspended its request to investigate accusations by the company’s competitors that it improperly routed calls to avoid paying access charges.

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