WorldCom Asks to Give Funds to Former Execs

WorldCom Inc. asked a bankruptcy judge for permission to give former Chief Executive Bernard J. Ebbers and ex-Chief Financial Officer Scott D. Sullivan half of a $15-million insurance settlement to help them pay legal defense costs.

WorldCom reached a settlement with National Union Fire Insurance Co. on executive liability coverage in November. The insurance was effective in 2002, when an $11-billion accounting scandal forced WorldCom into the biggest bankruptcy filing in U.S. history.

From Bloomberg News