WorldCom names chief restructuring, finance officers

By : |July 30, 2002 0

CLINTON, Miss: WorldCom Inc., the bankrupt long-distance telephone company, on Monday tapped two members of a corporate turnaround firm to oversee its restructuring and straighten out its finances. WorldCom said in a statement that it has hired Gregory Rayburn as chief restructuring officer, and John Dubel as chief financial officer. Both are principals with AlixPartners LLC, a corporate restructuring firm.

The executives will oversee WorldCom’s restructuring — including negotiating with existing creditors, evaluating proposals, overseeing the development of financial projections, disseminating information to stakeholders and overseeing the sale of any non-core assets.

Both executives will report to WorldCom Chief Executive John Sidgmore. The appointments are subject to bankruptcy court approval. Earlier this month, WorldCom filed the world’s largest bankruptcy petition, buckling under a massive debt load and a nearly $4 billion accounting scandal.

AlixPartners, based in the Detroit suburb of Southfield, Michigan, was formerly known at Jay Alix & Associates, but changed its name as of July 1. Earlier this year, the firm was hired to restructure bankrupt retailer Kmart Corp. and last year was hired at auto parts maker Hayes-Lemmerz International Inc. Rayburn has experience in operations, financial analysis, mergers and acquisitions, and valuations. He joined AlixPartners in August 2000 and most recently he headed the successful restructuring of Sunterra Corp.

Dubel’s restructuring experience includes operational reorganizations and cost reductions, financial department restructurings, strategic repositioning and divestitures. His experience includes telecom and high technology, manufacturing, financial services and oil and gas. Prior to joining AlixPartners in 2002, Dubel ran his own turnaround firm and served as chief restructuring officer at CellNet Data Systems Inc.

Last month, WorldCom disclosed it improperly recorded $3.85 billion in expenses and fired former CFO Scott Sullivan, who it alleged orchestrated the accounting debacle. Its former CEO Bernie Ebbers resigned under pressure in April. WorldCom, which transmits half of the world’s Internet traffic, was charged with fraud by the U.S. Securities and Exchange Commission and faces an investigation by the Department of Justice.

© Reuters

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