They'll have to find a bank to loan them some money (~$5 Billion) before they can stay around long enough to achieve those savings. They were having a hard enough time when they said they had $7+ B in EBITDA. Now I doubt they will see their $1B in Free Cash Flow that they were claiming they'd have if they "deferred" the interest payment on their preferreds. I don't see how deferring payments that are due is effective cash management. The upside, and the operational piece is that judging by all the insolvencies upto now have done little to effect existing services that are in place. Deepak Jain AiNET -----Original Message----- From: owner-nanog@merit.edu [mailto:owner-nanog@merit.edu]On Behalf Of Eric Germann Sent: Tuesday, June 25, 2002 10:28 PM To: nanog@merit.edu Subject: RE: How low can Worldcom stock go? Sensitivity: Confidential Accoriding to Reuters: -- WorldCom sees $2 billion a year in cash savings. -- WorldCom will lay off 17,000 workers starting Friday, which will save about $900 million annually. -- WorldCom will sell off non-core businesses, including South American assets, and its wireless resale business, which will save $700 million annually; -- WorldCom will save about $375 million annually by paying some preferred dividends in common stock, not cash, deferring some dividends, and discontinuing the dividend on the its MCI tracking stock. -- WorldCom will also cut capital expenditures in 2002 and forecasts 2003 capital investment at $2.1 billion. The usual stock sites have the releases. Ironically, Anderson stated tonight their work complied with accounting standards. Wonder where the 17,000 souls are going to come from?
-----Original Message----- From: owner-nanog@merit.edu [mailto:owner-nanog@merit.edu]On Behalf Of Eric Germann Sent: Tuesday, June 25, 2002 7:03 PM To: nanog@merit.edu Subject: How low can Worldcom stock go? Sensitivity: Confidential
Any bets where they will bottom out at? Lets see if they can beat Adelphia at $0.05 on 6/21/02
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From WSJ Tech alerts.
WORLDCOM UNCOVERED what appears to be one of the largest corporate frauds in history with the discovery of more than $3 billion in expenses that were improperly booked as capital expenditures.
For more information, see:
http://online.wsj.com/article/0,,SB1025044139757626480,00.html
========================================================================== Eric Germann CCTec ekgermann@cctec.com Van Wert OH 45801 http://www.cctec.com Ph: 419 968 2640 Fax: 603 825 5893
"The fact that there are actually ways of knowing and characterizing the extent of one’s ignorance, while still remaining ignorant, may ultimately be more interesting and useful to people than Yarkovsky"
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