WorldCom CEO Faces Huge Margin Call

WorldCom Inc. Chief Executive Bernard Ebbers may have to repay as much as $183.7 million in loans backed by 11.3 million shares of the company after the shares sank to a seven-year low this week.

The loans from Bank of America and WorldCom, which Ebbers took out to buy WorldCom stock, are due the business day after the company’s shares close at or below $10.

The so-called margin debt amounted to $183.7 million as of March 30, the phone-and-data service provider said in a regulatory filing.

WorldCom stock fell 44 cents, or 4.4%, to $9.61 in heavy trading on Nasdaq. The shares fell below $10 on Wednesday, closing at $9.85, as earnings reports from rivals disappointed investors. Analysts said the shares also had been hurt by concern that Ebbers’ shares would flood the market.

“There are no foreseeable circumstances that would require Mr. Ebbers to sell his shares,” said Brad Burns, spokesman for the Clinton, Miss.-based company. He declined to comment on whether terms mentioned in the March filing had been amended.