Bankrupt WorldCom continues FTS 2001 services

Bankrupt WorldCom continues FTS 2001 services

In the wake of its record bankruptcy filing yesterday, WorldCom Inc. has said it will continue providing long-distance telecommunications services to federal users under the FTS 2001 contract.

'WorldCom has assured the General Services Administration that the bankruptcy filing will not affect the company's performance' toward federal customers, GSA spokeswoman Mary Alice Johnson said. 'WorldCom promises to fulfill its commitment to deliver high-quality service.'

The Mississippi carrier filed for Chapter 11 bankruptcy protection Sunday as part of an agreement with lenders to secure $2 billion in credit. The company last month announced a $3.8 billion restatement of earnings and has since missed interest payments on $30 billion in debt. About 20 percent of the work force has been laid off.

According to GSA figures, WorldCom did $462 million worth of business with 20 government departments or agencies in fiscal 2001.

About the Author

William Jackson is a Maryland-based freelance writer.

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