The $75 Billion Write-Off


MCI, in its previous incranation as the massively corrupt institution, called WorldCom, was a house of cards – that we have known. But how big, well today you get an idea. Reuters reports that MCI’s financial restatement for 2001 and 2000 resulted in a net reduction of $74.4 billion to its previously reported pre-tax results. WorldCom, said that consolidated revenues were $37.7 billion in 2001 and $39.3 billion in 2000. It had a net loss of $15.6 billion in 2001 and $48.9 billion in 2000, including the restatement adjustments, Reuters reports.

At the end of 2003, the Company’s consolidated cash and cash equivalents was approximately $6 billion. “This filing culminates the largest and most complex financial restatement ever undertaken,” said Bob Blakely, MCI executive vice president and chief financial officer. “It is one of the last remaining milestones on our path to emerge from Chapter 11 protection. We appreciate the dedication and hard work of the MCI employees, as well as those at Deloitte & Touche, who participated in this process, and KPMG who audited the financials.”

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