================================================================= WORLDCOM BANKRUPTCY NEWS Issue Number 1 ----------------------------------------------------------------- Copyright 2002 (ISSN XXXX-XXXX) July 22, 2002 ----------------------------------------------------------------- Bankruptcy Creditors' Service, Inc. 609-392-0900 FAX 603-415-5198 ----------------------------------------------------------------- WORLDCOM BANKRUPTCY NEWS is published by Bankruptcy Creditors' Service, Inc., 24 Perdicaris Place, Trenton, New Jersey 08618, on an ad hoc basis (generally every 10 to 20 days) as significant activity occurs in the Debtor's cases. New issues are prepared by Danilo R. Munoz, Jr., Frauline Sinson-Abangan and Peter A. Chapman, Editors. Subscription rate is US$45 per issue. Any re-mailing of WORLDCOM BANKRUPTCY NEWS is prohibited. ================================================================= IN THIS ISSUE ------------- [00000] HOW TO SUBSCRIBE TO WORLDCOM BANKRUPTCY NEWS [00001] BACKGROUND & DESCRIPTION OF WORLDCOM [00002] CONSOLIDATED BALANCE SHEET AT MARCH 31, 2002 [00003] COMPANY'S PRESS RELEASE ANNOUNCING CHAPTER 11 FILING [00004] WORLDCOM CHAPTER 11 DATABASE [00005] LIST OF THE DEBTOR'S 50-LARGEST UNSECURED CREDITORS [00006] ORGANIZATIONAL MEETING WITH US TRUSTEE TO FORM COMMITTEES KEY DATE CALENDAR ----------------- 07/21/02 Voluntary Petition Date 08/05/02 Deadline for filing Schedules of Assets and Liabilities 08/05/02 Deadline for filing Statement of Financial Affairs 08/05/02 Deadline for filing Lists of Leases and Contracts 08/10/02 Deadline to provide Utilities with adequate assurance 09/19/02 Deadline to make decisions about lease dispositions 10/19/02 Deadline to remove actions pursuant to F.R.B.P. 9027 11/18/02 Expiration of Debtor's Exclusive Plan Proposal Period 01/17/02 Expiration of Debtor's Exclusive Solicitation Period 07/20/04 Deadline for Debtor's Commencement of Avoidance Actions Organizational Meeting with UST to form Committees Bar Date for filing Proofs of Claim First Meeting of Creditors pursuant to 11 USC Sec. 341 ----------------------------------------------------------------- [00000] HOW TO SUBSCRIBE TO WORLDCOM BANKRUPTCY NEWS ----------------------------------------------------------------- WORLDCOM BANKRUPTCY NEWS is distributed to paying subscribers by electronic mail. New issues are published on an ad hoc basis as significant activity occurs (generally every 10 to 20 days) in the Debtors' cases. The subscription rate is US$45 per issue. Newsletters are delivered via e-mail; invoices, transmitted following publication of each newsletter issue, arrive by fax. Re-mailing of WORLDCOM BANKRUPTCY NEWS is prohibited. Distribution to multiple individuals at the same firm is provided at no additional charge; folks outside of your firm should set-up and pay for their own subscriptions. Subscriptions may be canceled at any time without further obligation. 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Name: ---------------------------------------------- Firm: ---------------------------------------------- Address: ---------------------------------------------- ---------------------------------------------- Phone: ---------------------------------------------- Fax: ---------------------------------------------- E-Mail: ---------------------------------------------- (Distribution to multiple professionals at the same firm is provided at no additional cost.) WORLDCOM BANKRUPTCY NEWS is distributed to paying subscribers by electronic mail. New issues are published on an ad hoc basis as significant activity occurs (generally every 10 to 20 days) in the Debtor's cases. The subscription rate is US$45 per issue. Newsletters are delivered via e-mail; invoices, transmitted following publication of each newsletter issue, arrive by fax. Re-mailing of WORLDCOM BANKRUPTCY NEWS is prohibited. Distribution to multiple individuals at the same firm is provided at no additional charge; folks outside of your firm should set-up and pay for their own subscriptions. Subscriptions may be canceled at any time without further obligation. ----------------------------------------------------------------- [00001] BACKGROUND & DESCRIPTION OF WORLDCOM ----------------------------------------------------------------- WorldCom, Inc. 500 Clinton Center Dr. Clinton, Mississippi 39056 Telephone (601) 460-5600 Fax (601) 460-8269 http://www.worldcom.com Ranking No. 42 on the Fortune 500 list, WorldCom, Inc. (NASDAQ: WCOME and MCITE) ranks ahead of Sprint, BellSouth and Qwest, and behind Verizon, AT&T and SBC Communications in the telecommunications industry. WorldCom is a pre-eminent global communications provider, operating in more than 65 countries and maintaining one of the most expansive IP networks in the world. WorldCom's UUNet unit, it's estimated, carries 50% of all Internet traffic in the United States. MCI Telecommunications, WorldCom's long-distance service, is the second-largest long-distance carrier in the United States. Through its core voice, data, Internet and international communications services -- the Company carries more data over its networks than any other entity. WorldCom, Inc., is a holding company for its subsidiaries' business operations. The major components of WorldCom's business are: SkyTel Communications, Inc. -- a leading provider of nationwide messaging services in the United States. SkyTel Communications' principal operations include one-way messaging services in the United States, advanced messaging services on the narrow band personal communications services network in the United States and international one-way messaging operations. MCI Communications Corporation -- one of the world's largest and most advanced digital networks, connecting local markets in the United States to more than 280 countries and locations worldwide. Embratel Participacoes S.A. -- WorldCom holds a 51.79% voting interest and a 19.26% economic interest in Brazil's facilities-based national and international communications provider. Embratel provides domestic long distance and international telecommunications services in Brazil, as well as over 40 other communications services, including leased high-speed data, Internet, frame relay, satellite and packet- switched services. CompuServe Corporation -- offering worldwide network access, management and applications, and Internet services to businesses. The consumer services side of CompuServe's business is owned by America Online, Inc. ANS Communications, Inc. -- provides Internet access services to America Online, Inc., and AOL subscribers located in the United States, Canada, the United Kingdom, Sweden and Japan, under five-year contracts running through January 2003. Brooks Fiber Properties, Inc. -- a leading facilities-based provider of competitive local telecommunications services, commonly referred to as a competitive local exchange carrier or CLEC, in selected cities within the United States. Brooks Fiber Properties acquires and constructs its own state-of-the- art fiber optic networks and facilities and leases network capacity from others to provide long distance carriers, Internet Service Providers, wireless carriers and business, government and institutional end users with an alternative to the incumbent local exchange carriers for a broad array of high quality voice, data, video transport and other telecommunications services. MFS Communications Company, Inc. -- gives WorldCom local network access facilities via digital fiber optic cable networks installed in and around major United States cities, and in several major European cities. MFS owns a network platform, which consists of owned transmission and switching facilities, and network capacity leased from other carriers primarily in the United States and Western Europe. UUNET Technologies, Inc. -- a leading worldwide provider of a comprehensive range of Internet access options, applications, and value-added services to businesses, other telecommunications companies and online services providers. WorldCom divides the Company into two Groups that contribute and own: Annual Revenues Net Income Total Assets --------------- ---------- ------------ WorldCom Group 58.2% 62.0% 85.2% MCI Group 41.8% 38.0% 14.8% The WorldCom Group includes all network assets (except voice switches used to forward audio and data information from one point to another, and dial-up Internet modems) and all cash, investments, buildings, furniture, fixtures and equipment, and the goodwill, other intangible assets, other long-term assets and other current assets associated with the WorldCom network. Those network assets comprise approximately 70,000 route miles of network connections linking metropolitan centers and various regions across North America, Europe, the Middle East, Africa, Latin America, Australia and Asia. The MCI Group includes voice switches, dial-up Internet modems and the goodwill, other intangible assets, other long-term assets and other current assets associated with those voice switches and modems. WorldCom provides the U.S. Government with network services for critical applications, including: * communications services that support customer service to 80 million Social Security beneficiaries; * air traffic control applications for the Federal Aviation Administration; * network management for the Department of Defense, and * critical data network services for the United States Postal Service; and * long distance voice and data communications services for the House of Representatives, the Senate, the General Accounting Office and virtually every other government agency. WorldCom, Inc., derives revenues from: ______________________________________________________________ | | | | | | | | 19.0% Data Services | | | | | |-------------------------------------------| | | 6.0% Internet Services | | |-------------------------------------------| | WorldCom Group | | | | 18.0% Business Voice Services | | | | | |-------------------------------------------| | | | | | 15.0% International Operations | | | | |------------------|-------------------------------------------| | | | | | | | | | | | | | | 31.7% Long Distance Services | | | | | | | | | | | MCI Group | | | |-------------------------------------------| | | 0.5% Local Exchange Carrier Services | | |-------------------------------------------| | | 4.2% Dial-Up Internet Access | | |-------------------------------------------| | | 1.4% Wireless Messaging | | |-------------------------------------------| | | 3.7% Wholesale Data | |__________________|___________________________________________| Where WorldCom's Restructuring is Going "In order to implement the restructuring and reorganization of WorldCom's business and financial affairs, while minimizing the adverse effects of the contraction in credit availability and other negative factors, WorldCom was constrained to commence these chapter 11 cases," WorldCom Senior Vice President and Treasurer Susan Mayer says. "The protection of chapter 11 is essential to the preservation and enhancement of WorldCom's businesses, the services provided to their customers, their employees, the communities in which they operate, and the protection of all parties in interest. For the next 30-day period, Ms. Mayer provides some highlights about the Company's projected finances. Between today and August 20, 2002, WorldCom projects: * $1,476,000,000 in cash receipts; * $1,448,000,000 in cash disbursements; By August 20, 2002, Ms. Mayer estimates that WorldCom's books will show: * $962,000,000 of Unpaid [Post-Petition] Obligations; and * $2,102,000,000 of Unpaid Receivables. "Through the commencement of these chapter 11 cases," Ms. Mayer continues, "WorldCom intends to achieve a substantial deleveraging of its capital structure and the elimination of underperforming or non-core assets. WorldCom anticipates that these initiatives will enable it to emerge from the chapter 11 process as a financially viable business. Millions of people have a real stake in the strength of WorldCom's continuing businesses-WorldCom's customers, employees, lenders and suppliers. Indeed, WorldCom plays a vital role in the economy and telecommunications infrastructure of the United States, as well as globally. WorldCom believes that with a seamless transition into these chapter 11 cases, it will be able to maintain high levels of customer service, continue business with critical vendors, retain a committed employee base, protect the assets of WorldCom and maximize value for the benefit of its estates, creditors and all parties in interest." ----------------------------------------------------------------- [00002] CONSOLIDATED BALANCE SHEET AT MARCH 31, 2002 ----------------------------------------------------------------- WORLDCOM, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS As of March 31, 2002 ASSETS Current assets: Cash and cash equivalents $ 2,267,000,000 Accounts receivable, net of allowance for bad debts of $1,215,000,000 5,005,000,000 Deferred tax asset 222,000,000 Other current assets 2,202,000,000 ----------------- Total current assets 9,696,000,000 ----------------- Property and equipment: Transmission equipment 25,219,000,000 Communications equipment 7,595,000,000 Furniture, fixtures and other 12,171,000,000 Construction in progress 4,977,000,000 ----------------- 49,962,000,000 Accumulated depreciation (10,807,000,000) ----------------- 39,155,000,000 ----------------- Goodwill and other intangible assets 50,607,000,000 Other assets 4,345,000,000 ----------------- $ 103,803,000,000 ================= LIABILITIES AND SHAREHOLDERS' INVESTMENT Current liabilities: Short-term debt and current maturities of long-term debt $ 858,000,000 Accrued interest 853,000,000 Accounts payable and accrued line costs 4,612,000,000 Other current liabilities 3,641,000,000 ----------------- Total current liabilities 9,964,000,000 ----------------- Long-term liabilities, less current portion of long-term debt 29,300,000,000 Deferred tax liability 4,034,000,000 Other liabilities 536,000,000 ----------------- Total long-term liabilities 33,870,000,000 ----------------- Commitments and contingencies Minority interests 52,000,000 Company obligated mandatorily redeemable and other preferred securities 2,011,000,000 Shareholders' investment: Preferred stock, par value $.01 per share; authorized: 30,967,639 shares; none issued -- Common stock: WorldCom group stock, par value $.01 per share; authorized: 4,850,000,000 shares issued and outstanding: 2,969,549,369 30,000,000 MCI group stock, par value $.01 per share; authorized: 150,000,000 shares; issued and outstanding: 118,595,720 1,000,000 Additional paid-in capital 54,314,000,000 Retained earnings 4,388,000,000 Unrealized holding gain on marketable equity securities 4,000,000 Cumulative foreign currency translation adjustment (646,000,000) Treasury stock, at cost, 6,765,316 shares of WorldCom group stock and 270,611 shares of MCI group stock (185,000,000) ----------------- Total shareholders' investment 57,906,000,000 ----------------- $ 103,803,000,000 ================= ----------------------------------------------------------------- [00003] COMPANY'S PRESS RELEASE ANNOUNCING CHAPTER 11 FILING ----------------------------------------------------------------- CLINTON, Mississippi -- July 21, 2002 -- WorldCom, Inc. (Nasdaq: WCOME, MCITE) today announced that WorldCom and substantially all of its active U.S. subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York. Chapter 11 allows a company to continue operating in the ordinary course of business and to maximize recovery for the company's stakeholders. The filings will enable the company to continue to conduct business as usual while it develops a reorganization plan. WorldCom's non-U.S. subsidiaries are not included in the filing and will also continue to operate normally. WorldCom also announced that it has obtained an agreement to arrange up to $2 billion in Debtor-in-Possession (DIP) financing. The company already has secured a commitment of $750 million of this amount from Citibank, N.A., JP Morgan Chase Bank and General Electric Capital Corporation. This facility is being arranged by Salomon Smith Barney Inc., JP Morgan and General Electric Capital Markets Group, Inc. The facility will be used to supplement the company's cash flow during the Chapter 11 proceedings and is subject to approval by the Bankruptcy Court. Once approved, the arrangement will provide an immediate source of funds to WorldCom, allowing the company to operate its business normally while it focuses on its new strategic plan, restructures its finances, reduces its debt burden and strengthens its balance sheet. This additional liquidity will enable the company to satisfy customary obligations associated with the daily operations of its business, including the timely payment for new services, employee wages and other obligations. "Chapter 11 enables us to create the greatest possible value for our creditors, preserve jobs for our employees, continue to deliver top-quality service to our customers and maintain our role in America's national security," said John Sidgmore, president and chief executive officer of WorldCom. "We will use this time under reorganization to regain our financial health and focus, while operating with the highest integrity. We will emerge from Chapter 11 as quickly as possible and with our competitive spirit intact." WorldCom currently employs more than 60,000 people in 65 countries and serves over 20 million residential and business customers. It also operates the world's largest Internet network. "Our total focus will be to take this company forward in the best way possible and with the highest ethics so that WorldCom can continue to be an important part of our economy. To that we are totally committed," said Sidgmore. To this end, WorldCom announced the election of two new members to its Board of Directors: * Nicholas deB. Katzenbach -- Mr. Katzenbach currently is a private attorney and previously served as Attorney General of the United States (1965-66), Under Secretary of State for the United States (1966- 69), and as Senior Vice President and General Counsel of IBM Corporation (1969-86). * Dennis R. Beresford -- Mr. Beresford currently is Professor of Accounting at the Terry College of Business, University of Georgia and previously served as Chairman of the Financial Accounting Standards Board (1987-97). Mr. Katzenbach and Mr. Beresford have not previously been involved in the company's affairs. Following their election as Directors, Mr. Katzenbach and Mr. Beresford were appointed to a Special Investigative Committee of the Board to conduct an independent review of the Company's accounting practices and preparation of financial statements. This Special Committee will take on the oversight role with respect to the previously-announced investigation led by William R. McLucas into these matters. "The additional board members of this caliber demonstrate our seriousness in attracting independent board members and establishing a quality governance structure for our corporation. Their willingness to serve is also an indication of the importance of our company's future," said Sidgmore. ----------------------------------------------------------------- [00004] WORLDCOM CHAPTER 11 DATABASE ----------------------------------------------------------------- Bankruptcy Case Nos.: 02-13532, et al., to be jointly administered under Bankruptcy Case No. 02-13533 Debtor Entities Filing Separate Chapter 11 Petitions: WorldCom Caribbean, Inc. WorldCom, Inc. Brooks Fiber Properties, Inc. Com Systems, Inc. E.L. Acquisition, Inc. Healan Communications, Inc. Intermedia Communications Inc. MCI Communications Corporation MCI WORLDCOM Brands, L.L.C. MCI WorldCom Management Company, Inc. Military Communications Center, Inc. SkyTel Communications, Inc. TransCall America, Inc. TTI National, Inc. Wireless One, Inc. WorldCom Broadband Solutions, Inc. WorldCom International Mobile Services, Inc. WorldCom Wireless, Inc. Access Network Services, Inc. Access Virginia, Inc. ALD Communications, Inc. BFC Communications, Inc. Bittel Telecommunications Corporation Brooks Fiber Communications of Arkansas, Inc. Brooks Fiber Communications of Bakersfield, Inc. Brooks Fiber Communications of Connecticut, Inc. Brooks Fiber Communications of Fresno, Inc. Brooks Fiber Communications of Massachusetts, Inc. Brooks Fiber Communications of Michigan, Inc. Brooks Fiber Communications of Minnesota, Inc. Brooks Fiber Communications of Mississippi, Inc. Brooks Fiber Communications of Missouri, Inc. Brooks Fiber Communications of Nevada, Inc. Brooks Fiber Communications of New England, Inc. Brooks Fiber Communications of New Mexico, Inc. Brooks Fiber Communications of New York, Inc. Brooks Fiber Communications of Ohio, Inc. Brooks Fiber Communications of Oklahoma, Inc. Brooks Fiber Communications of Rhode Island, Inc. Brooks Fiber Communications of Sacramento, Inc. Brooks Fiber Communications of San Jose, Inc. Brooks Fiber Communications of Stockton, Inc. Brooks Fiber Communications of Tennessee, Inc. Brooks Fiber Communications of Texas, Inc. Brooks Fiber Communications of Tucson, Inc. Brooks Fiber Communications of Tulsa, Inc. Brooks Fiber Communications of Utah, Inc. Brooks Fiber Communications-LD, Inc. BTC Transportation Corporation Business Internet, Inc. Chicago Fiber Optic Corporation COM/NAV Realty Corp. Cross Country Wireless, Inc. CS Wireless Battle Creek, Inc. CS Wireless Systems, Inc. Express Communications, Inc. FiberNet Rochester, Inc. Fibernet, Inc. ICI Capital LLC Intelligent Investment Partners, Inc. Intermedia Capital, Inc. Intermedia Communications of Virginia, Inc. Intermedia Investment, Inc. Intermedia Licensing Company Intermedia Services LLC Jones Lightwave of Denver, Inc. Marconi Telegraph Cable Company, Inc. MCI Canada, Inc. MCI Equipment Acquisition Corporation MCI Galaxy III Transponder Leasing, Inc. MCI Global Access Corporation MCI Global Support Corporation MCI International Services, L.L.C. MCI International Telecommunications Corporation MCI International, Inc. MCI International Telecommunications Holding Corporation MCI Investments Holdings, Inc. MCI Network Technologies, Inc. MCI Omega Properties, Inc. MCI Payroll Services, LLC MCI Research, Inc. MCI Transcon Corporation MCI Wireless, Inc. MCI WORLDCOM Brooks Telecom, LLC MCI WORLDCOM Capital Management Corporation MCI WORLDCOM Communications of Virginia, Inc. MCI WORLDCOM Communications, Inc. MCI WorldCom Financial Management Corporation MCI WORLDCOM Global Networks U.S., Inc. MCI WORLDCOM International, Inc. MCI WORLDCOM MFS Telecom, LLC MCI WORLDCOM Network Services of Virginia, Inc. MCI WORLDCOM Network Services, Inc. MCI WORLDCOM Synergies Management Company, Inc. MCI/OTI Corporation MCImetro Access Transmission Services of Virginia, Inc. MCImetro Access Transmission Services LLC Metrex Corporation Metropolitan Fiber Systems of Arizona, Inc. Metropolitan Fiber Systems of Baltimore, Inc. Metropolitan Fiber Systems of California, Inc. Metropolitan Fiber Systems of Connecticut, Inc. Metropolitan Fiber Systems of Dallas, Inc. Metropolitan Fiber Systems of Delaware, Inc. Metropolitan Fiber Systems of Denver, Inc. Metropolitan Fiber Systems of Detroit, Inc. Metropolitan Fiber Systems of Florida, Inc. Metropolitan Fiber Systems of Houston, Inc. Metropolitan Fiber Systems of Indianapolis, Inc. Metropolitan Fiber Systems of Minneapolis/St. Paul, Inc. Metropolitan Fiber Systems of New Hampshire, Inc. Metropolitan Fiber Systems of New Jersey, Inc. Metropolitan Fiber Systems of New Orleans, Inc. Metropolitan Fiber Systems of New York, Inc. Metropolitan Fiber Systems of Ohio, Inc. Metropolitan Fiber Systems of Oregon, Inc. Metropolitan Fiber Systems of Philadelphia, Inc. Metropolitan Fiber Systems of Pittsburgh, Inc. Metropolitan Fiber Systems of Seattle, Inc. Metropolitan Fiber Systems of St. Louis, Inc. Metropolitan Fiber Systems/McCourt, Inc. MFS CableCo U.S., Inc. MFS Datanet, Inc. MFS Telecom, Inc. MFS Telephone of Missouri, Inc. MFS Telephone of New Hampshire, Inc. MFS Telephone of Virginia, Inc. MFS Telephone, Inc. MFS/C-TEC MFSA Holding, Inc. MobileComm Europe Inc. Mtel Asia, Inc. Mtel Cellular, Inc. Mtel International, Inc. Mtel Latin America, Inc. Mtel Microwave, Inc. Mtel Service Corporation N.C.S. Equipment Corporation National Telecommunications of Florida, Inc. Netwave Systems, Inc. networkMCI, Inc. Northeast Networks, Inc. Nova Cellular Co. NTC, Inc. Overseas Telecommunications, Inc. Shared Technologies Fairchild Communications Corporation Shared Technologies Fairchild Telecom, Inc. Shared Technologies Fairchild, Inc. SkyTel Corp. SkyTel Payroll Services, LLC Southernnet of South Carolina, Inc. Southernnet Systems, Inc. Southernnet, Inc. Telecom*USA, Inc. Teleconnect Company Teleconnect Long Distance Services & Systems Co. Tenant Network Services, Inc. Tru Vision Wireless, Inc. Tru Vision-Flippin, Inc. UUNET Australia Limited UUNET Caribbean, Inc. UUNET Holdings Corp. UUNET International Ltd. UUNET Japan Ltd. UUNET Payroll Services, LLC UUNET Technologies, Inc. Virginia Metrotel, Inc. Wireless Video Services WorldCom Caribbean, Inc. WorldCom East, Inc. WorldCom ETC, Inc. WorldCom Federal Systems, Inc. WorldCom ICC, Inc. WorldCom International, Inc. WorldCom International Data Services, Inc. WorldCom International Mobile Services LLC WorldCom Overseas Holdings, Inc. WorldCom Payroll Services, LLC WorldCom Purchasing, LLC WorldCom Ventures, Inc. Petition Date: July 21, 2002 U.S. Bankruptcy Court: United States Bankruptcy Court Southern District of New York Alexander Hamilton Custom House One Bowling Green, 5th Floor New York, New York 10004-1408 Telephone (212) 668-2870 Bankruptcy Judge: The Honorable ____________ Debtors' Counsel: Marcia L. Goldstein, Esq. Lori R. Fife, Esq. Alfredo R. Perez, Esq. Weil Gotshal & Manges LLP 767 Fifth Avenue New York, NY 10153 Telephone (212) 310-8000 Fax (212) 310-8007 Counsel to Ad Hoc WorldCom Bondholders' Committee: Daniel H. Golden, Esq. Akin Gump Strauss Hauer & Feld, LLP Counsel to Ad Hoc MCI Bondholders' Committee: David S. Rosner, Esq. Kasowitz Benson Torres and Friedman LLP Counsel to Ad Hoc Intermedia Bondholders' Committee: Alan W. Kornberg, Esq. Paul Weiss Rifkind Wharton & Garrison U.S. Trustee: Carolyn S. Schwartz United States Trustee for Region 2 33 Whitehall Street, Suite 2100 New York, NY 10004 Telephone (212) 510-0500 ----------------------------------------------------------------- [00005] LIST OF THE DEBTOR'S 50-LARGEST UNSECURED CREDITORS ----------------------------------------------------------------- Creditor Nature of Claim Claim Amount J.P. Morgan Trust Company, N.A. Bond Debt $17,200,000,000 Indenture Trustee One Oxford Centre Suite 1110 301 Grant Street Pittsburgh, PA 15219 Attn: Bridget Shessler Fax No.: (412) 291-2070 Mellon Bank, N.A. Bond Debt $6,600,000,000 Indenture Trustee Two Mellon Bank Center Pittsburgh, Pennsylvania 15259 Citibank, N.A. Bond Debt $3,290,000,000 Indenture Trustee 120 Wall Street 13th Floor New York, NY 10043 Attn: Corporate Trust Administration JP Morgan Chase Bond Debt $3,005,029,292 4 New York Plaza 4th Floor-Corp. Actions New York NY 10004 Attn: Liz Cooper Fax No.: (212) 509-6137 Bear Stearns Bond Debt $2,717,854,996 1 Metrotech Center North 4th Floor Brooklyn, NY 11201-3859 Attn: Greg Schron Fax No.: (347) 643-1747 Bank of New York Bond Debt $2,581,028,446 1 Wall Street 6th Floor - Reorg Dept. New York, NY 10286 Attn: Mickey Jimenez Fax No.: (212) 635-6361 State Street Bank Bond Debt $2,022,466,906 1776 Heritage Dr A4 N.W. - Corp Actions Unit N. Quincy, MA 02171 Attn: Rocco Giovani Fax No.: (617) 537-6608 Morgan Stanley & Co. Bond Debt $1,907,821,926 1 Pierrepont Plaza 7th Floor - Reorg Dept Brooklyn, NY 11201 Attn: Richard Garaventa Fax No.: (718) 754-6373 Goldman, Sachs & Co. Bond Debt $1,518,753,945 10 Hanover Square 11th Floor - Reorg. Dept New York, NY 10005 Attn: Ron Jackson / Robert Cregan Fax No.: (212) 902-1431 Suntrust Bank, Central Florida, Bond Debt $1,220,000,000 National Association Indenture Trustee 225 East Robinson Street, Suite 250 Orlando, Florida 32801 Tel: 407-237-5179 Fax: 407-237-5299 Attn: Corporate Trust Department CitiCorp Services Inc. Bond Debt $1,079,848,253 3800 Citibank Center Bldg B - 3rd Floor - Zone 12 Tampa, FL 33610-9122 Attn: Maureen Chatfield Fax No.: (813) 604-1140 Deutsche Bank Bond Debt $1,006,159,988 648 Grassmere Park Road Mail Stop 7236 Nashville, TN 37211 Attn: Ward Cullum - Reorg. Dept Fax No.: (615) 835-2782 Boston Safe Deposit Trust Co. Bond Debt $867,470,731 c/o Mellon Bank 3 Mellon Bank Center Mail Zone 153-3631 Pittsburgh PA 15259 Attn: Stacey Mozuch / Gina Tighe Fax No.: (412) 236-0029 ABN AMRO ING Baring (US) Bond Debt $753,059,131 Securities, Inc. 350 Park Avenue Reorg Dept -2nd Floor New York, NY 10055 Attn: Richard Leung Fax No.: (212) 409-0296 Wilmington Trust Company Bond Debt $750,000,000 Indenture Trustee Attn: Corporate Administration Rodney Square North 1110 North Market Street Wilmington, DE 19890 Fax No.: (302) 651-8882 Salomon Smith Barney Bond Debt $747,933,372 333 West 34th Street 3rd Floor - Reorg. New York, NY 10001 Attn: John Andropoli Fax No.: (212) 615-9053 Northern Trust Company Bond Debt $649,862,045 801 South Canal Reorg Dept. C-One N Chicago, IL 60607 Attn: Robert Balentin Fax No.: (312) 630-1679 UBS Warburg LLC Bond Debt $369,228,999 677 Washington Blvd. 9th Floor - Reorg Dept Stamford, CT 06912 Attn: Carlos Lede Wells Fargo Bond Debt $352,084,050 733 Marquette Ave. South Mail Sta. N 9306-057 Minneapolis, MN 55479 Attn: Trent Bader Fax No.: (612) 667-4410 Banc of America Securities LLC Bond Debt $333,722,209 655 Montgomery Street 16th Floor - Reorg. Dept. San Francisco, CA 94111 Attn: Marilyn Alberto Firstar Trust Co Bond Debt $298,271,867 1555 N. River Center Dr. Suite 210 - Corp. Actions Milwaukee, WI 53201 Attn: Scott Olson and Paul Kuxhaus and N. Morales Fax No.: (414) 905-5515 Chase Securities Bond Debt $273,366,000 4 New York Plaza 4th Floor-Corp. Actions New York NY 10004 Attn: Liz Cooper CS First Boston Corp. Bond Debt $272,557,059 11 Madison Avenue 7th Floor - Reorg Dept. New York, 10010 Attn: Larry Hammond and Dawn Morales Lehman Brothers Bond Debt $270,263,851 101 Hudson Street 30th Fl. Jersey City NJ 07302 Attn: Steve Spector Deutsche Bank AG Bank Loan $240,793,566 31 West 52nd Street New York, NY 10019 Attn: Philippe Sandmeier Phone: 212-469-2964 Fax: 212-409-4604 ABN Amro Bank NV Bank Loan $203,208,722 55 East 52nd Street New York, NY 10055 Attn: Nan Logan Phone: 212-409-1546 Fax: 212-409-5406 DB Alex Brown & Sons, Inc. Bond Debt $188,807,861 375 W. Padonia Road Mail Stop TIM030105 Timonium, MD 21093 Attn: Reorg Dept Fax No.: (410) 308-6300 FUNB-Phil Main Bond Debt $186,491,000 123 South Broad Street 10th Floor - Capital Changes Philadelphia, PA 19109 Attn: Eileen Blake Fax No.: (215) 973-1348 West LB Bank Loan $171,637,453 1211 Avenue of the Americas New York, NY 10036 Attn: Lucie Guernsey Phone: 212-852-6134 Fax: 212-852-6300 Custodial Trust Bond Debt $163,714,000 101 Carnegie Center 3rd Floor Princeton, NJ 08540 Attn: Jay Silverstein Fax No.: (609) 951-2327 Merrill Lynch Bond Debt $155,505,513 101 Hudson Street 10th Floor - Reorg Dept Jersey City, NY 07302 Attn: Michael Bookstaber Fax No.: (201) 557-1766 Citibank NA Bank Loan $155,230,416 390 Greenwich Street New York, NY 10013 Attn: Richard Banziger Phone: 212-723-6911 Fax: 212-723-8590 Brown Brothers Harriman & Co. Bond Debt $152,833,260 525 Washington Blvd. 11th Floor - Reorg Dept Jersey City, NJ 07310 -1607 Attn: Tony Valenti Fax No.: (201) 418-6581 Mizuho Holdings -- DKB/Fuj/IBJ Bank Loan $150,339,375 95 Christopher Columbus Drive Jersey City, NJ 07302 Attn: Bill Kennedy Phone: 212-282-4570 Fax: 212-282-4487 BNP Paribas Bank Loan $150,339,375 787 7th Avenue, 3rd Fl New York, NY 10019 Attn: Aida Kalla Phone: 212-841-3169 Fax: 212-841-2146 Fleet National Bank Bank Loan $150,339,375 100 Federal Street Boston, MA 02110 Attn: Patrick Mcauliffe Phone: 617-434-0749 Fax: 617-434-8702 Intesabci S P A Bank Loan $150,339,375 One William Street New York, NY 10004 Attn: Anthony Globbi Phone: 212-607-3851 Fax: 212-809-2124 BNY Clearing Services, LLC Bond Debt $142,946,059 111 East Kilbourn Avenue 4th Floor - Reorg Dept. Milwaukee, WI 53202 Attn: Jean Luther Fax No.: (414) 272-1253 Bank of Tokyo-Mitsubishi Bank Loan $140,186,456 1251 Avenue of the Americas New York, NY 10020 Attn: Pamela Donnelly Phone: 212-782-4314 Fax: 212-782-6445 Icahn & Co., Inc. Bond Debt $140,000,000 One Wall Street Court Suite 980 New York, NY 10005 Attn: Angel Montalvo Fax No.: (212) 695-5571 Verizon Communications, Inc. Trade Debt $121,200,000 (includes GTB) subject to 1095 Avenue of the Americas set-off New York, NY 10036 Attn: Doreen A. Toben, CFO Phone: 212-395-2121 Fax: 212-821-2917 Morgan Stanley Dean Witter Bond Debt $118,423,447 75 Varick Street - 3rd Floor Attn: Reorg. Dept. New York, NY 10013 Attn: Elizabeth Ross Fax No.: (212) 392-2395 UMB Bank Bond Debt $112,345,003 928 Grand Avenue 11th Floor Kansas City MO 64106 Attn: Jeanette St. John - Corp Action Fax No.: (816) 860-4968 Bank of Nova Scotia Bank Loan $100,226,250 1 Liberty Plaza, 26th Floor New York, NY 10006 Attn: Steve Levi Phone: 212-225-5039 Fax: 212-225-5355 Credit Lyonnais Bank Loan $100,226,250 1301 Avenue of the Americas New York, NY 10019 Attn: Bruce Yeager Phone: 212-261-7840 Fax: 212-261-3288 Bank One NA Bank Loan $100,226,250 1 Bank One Plaza Mail Code IL1-0629 Chicago, IL 60670 Attn: Jennifer Jones Phone: 312-732-1005 Fax: 312-732-8587 Mellon Bank NA Bank Loan $100,226,250 1 Mellon Bank Center Pittsburgh, PA 15258 Attn: Tom Tarasovich Phone: 412-236-2790 Fax: 412-236-6112 Bayerische Landesbank Bank Loan $100,226,250 560 Lexington Avenue New York, NY 10002 Attn: Matthew DeCarlo Phone: 212-230-9036 Fax: 212-230-9166 Royal Bank of Scotland Bank Loan $100,226,250 101 Park Avenue, 12th Floor New York, NY 10178 Attn: Johnathan Barrow Phone: 212-401-3744 Fax: 212-401-3456 Lloyds TBS Bank PLC Bank Loan $100,226,250 1251 Avenue of the Americas New York, NY 10020 Attn: Nick Bruce Phone: 212-930-8976 Fax: 212-930-5098 ----------------------------------------------------------------- [00006] ORGANIZATIONAL MEETING WITH US TRUSTEE TO FORM COMMITTEES ----------------------------------------------------------------- The United States Trustee for Region II will contact each of WorldCom's 50 largest unsecured creditors at the addresses provided by the Debtors to invite them to an organizational meeting for the purpose of forming one or more official committees of unsecured creditors. Official creditors' committees, constituted under 11 U.S.C. Sec. 1102, ordinarily consist of the seven largest creditors who are willing to serve on a committee. Those committees have the right to employ legal and accounting professionals and financial advisors, at the Debtors' expense. They may investigate the Debtors' business and financial affairs. Importantly, official committees serve as fiduciaries to the general population of creditors they represent. Those committees will also attempt to negotiate the terms of a consensual chapter 11 plan -- almost always subject to the terms of strict confidentiality agreements with the Debtors and other core parties-in-interest. If negotiations break down, the Committee may ask the Bankruptcy Court to replace management with an independent trustee. If the Committee concludes reorganization of the Debtors is impossible, the Committee will urge the Bankruptcy Court to convert the chapter 11 cases to a liquidation proceeding. Typically, the U.S. Trustee convenes the organizational meeting within 10 days following the commencement of a chapter 11 case. Creditors who do not send a representative to the organizational meeting typically are not appointed. Contact the U.S. Trustee at (212) 510-0500 to ascertain the time, date and place of this meeting. Immediately following the U.S. Trustee's determinations about how many official committees will be appointed and who will be appointed to each committee, the newly formed committees convene their initial meeting. The first order of business is to listen to the U.S. Trustee explain the powers and duties of the committee as a whole and members' individual responsibilities. The Committee will generally elect a chairman. Thereafter, the Committee typically conducts beauty pageants to select their legal and financial advisors. *** End of Issue No. 1 *** ------------------------------------------------------------------------- Peter A. Chapman peter@bankrupt.com http://bankrupt.com ------------------------------------------------------------------------- Recommended Reading: Professor Stuart Gilson's newest title, "Creating Value Through Corporate Restructuring: Case Studies in Bankruptcies, Buyouts, and Breakups." List Price: $79.95 -- Discounted to $55.96 at http://amazon.com/exec/obidos/ASIN/0471405590/internetbankrupt ------------------------------------------------------------------------- *** Future editions of WorldCom Bankruptcy News are available *** *** only by subscription. Please complete and return the form *** *** included in this issue to set-up an on-going paid subscription. ***