Ebbers Opposes Plan to End Severance

Bernard J. Ebbers, forced out as WorldCom Inc.’s chief executive as the company slid into Chapter 11 bankruptcy proceedings last year, is fighting the retraction of his $1.5-million-a-year severance package.

Ebbers, who resigned in April 2002, breached his separation agreement, Ashburn, Va.-based WorldCom said in a filing with the U.S. Bankruptcy Court in Manhattan last month. Ebbers denied violating the accord in a filing Wednesday.

WorldCom’s filing didn’t explain how Ebbers allegedly breached the agreement.

The agreement called for Ebbers to pay back $408 million he borrowed from WorldCom or forfeit the benefits. Ebbers, 62, missed the first scheduled $25-million payment on the loan in April.

A spokeswoman for WorldCom, the second-biggest U.S. long-distance telephone company, declined to comment. Ebbers’ lawyer didn’t return a call seeking comment.

WorldCom is changing its name to MCI.