WorldCom to declare bankruptcy?
As WorldCom's financial situation darkens, analysts say bankruptcy could be just around the corner. Even if it isn't, the telecommunications company and its competitors are in for a rough ride for the next few years, according to Wall Street analysts.
Ratings firms slashed WorldCom's debt to "junk" status Thursday, raising the likelihood that the company will have to declare bankruptcy in order to restructure its business. While WorldCom, which could have $32 billion in debt by the end of the year, has said its customers aren't defecting, analysts say the company is bound to suffer as customers get nervous. Rivals like Sprint, AT&T and Qwest could also have a tough time. [CNET News]
Both Worldcom and Qwest are feeling the pain of all the broadband expansion. The irony is that in the case of Qwest the piece of the company that is holding it afloat is the dinosaur phone company that no one wanted. So many people have been burned by 'new technology' and it's easy appeal...mj
It's the lure of easy money
It's got a very strong appeal
--Glenn Frey
11:27:06 AM 
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