Corporate Monitor Must Approve WorldCom Expenditures, Judge Says

Communications Today, March 7, 2003

A federal judge on Thursday ruled that a corporate monitor for WorldCom [WCOEQ.PK] must approve in advance the estimated fees the company pays to lawyers, accountants and other advisors in order to prevent rising costs from eroding the company's worth. The judge disclosed that because of the case's size and the number of professional people involved, that expenditures on professional fees "could substantially diminish the assets or earnings power of the company."

WorldCom is expected to unveil its three-year business plan later this month and aims to emerge from bankruptcy this summer.

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