dbarc
join:2000-01-22
Fort Wayne, IN | That one VP may be very surprised.... That VP who said because of national security Worldcom wouldn't be permitted to fail. I have a feeling he should be one of the first out the door. He obviously doesn't have a clue.
I agree, UUNET will continue to operate should (likely) Worldcom end up in bankruptcy, just like the other parts of Worldcom will continue to operate. That fact that the government may use certain Worldcom assets has nothing to do as to whether the company will fold... they'd simply have the ability to exclude purchasers (such as foreign companies) to purchase certain assets which the government uses. (Though I'm sure any government branch is looking to see what alternatives they have available.) While the UUNET backbone may be considered critical infrastructure for commerce, IMHO, that only increases the chance the government would hope it would be sold as quickly as possible to a more stable entity.
Other than that, I don't see the company surviving intact at all unless there's a miracle in place, and it isn't called Uncle Sam. The UUNET and MFS assets can probably bring a pretty penny. MCI is in the dumps like the rest of the long distance carriers...who'd want to buy that and what creditor would want to recapitalize and restructure debt on that segment. Banks may not force the company into bankruptcy, as they'd be subordinate to the bondholders on their unsecured loans, something they don't want. But with the likely impending lawsuits, I see that happening sooner rather than later, even though the company has a fair amount of cash on hand. Even if the banks would consider restructuring loans using secured assets, those wouldn't be above legal judgments. And with the reports of the huge losses from pension plans alone, I'm guessing some of these suits are going to be looking for very lofty sums.
Actually, I'd like to see the new guy in place attempt to salvage it, but it may take the bankruptcy just to clear the decks and get assets liability-free so others would even be willing to purchase the pieces.
..standard 'I am not a lawyer' applicable. I don't even play one on TV... just my opinion. |
