WorldCom Emerges From Chapter 11

WorldCom Inc. emerged from Chapter 11 bankruptcy protection, shedding $35 billion in debt and a name that had become synonymous with corporate scandal.

WorldCom is now officially known as MCI Inc., the name of the long-distance phone business it acquired in 1998. The company had been doing business as MCI for about a year but could not make the official switch until it left bankruptcy protection.

The bankruptcy process has allowed the company to slash its debt from $41 billion to about $6 billion. That will shave $2.1 billion a year off interest payments for a company producing about $21 billion a year in revenue.

MCI issued about 320 million shares to creditors, including $250 million worth to the Securities and Exchange Commission, part of a $750-million fine it paid to settle fraud allegations. A company spokesman said the company probably would be listed on Nasdaq within the next few weeks.