Bankrupt telecom giant MCI, formerly known as WorldCom, has restated its income statements for 2000 and 2001 to the tune of $74.4 billion, a figure that includes a $60 billion dollar writedown in the value of some assets. The restatements included correction of accounting records and a review of the accounting for all major acquisitions dating back to 1993.
The company's announcement completes its massive restatement of the company's results and clears another obstacle to emerging from bankruptcy protection. Worldcom's bankruptcy filing in 2002 made it the largest company in US history to fail.
MCI, hoping to emerge from bankruptcy in April and said the restatements would have no effect on its current financial condition, including its six billion dollar cash reserve.
"This filing culminates the largest and most complex financial restatement ever undertaken," said Bob Blakely, MCI executive vice president and chief financial officer. "It is one of the last remaining milestones on our path to emerge from Chapter 11 protection."
The company filed for bankruptcy shortly after massive fraud and accounting irregularities came to light. The fraud was believed to have involved misstatements of some $11 billion.
Federal investigators have filed criminal charges against a handful of former executives, most recently against former chief executive Bernie Ebbers. The former chief financial officer of the company pleaded guilty to fraud charges earlier this month.
MCI employs more than 100 people in Ireland, in Dublin, Cork, Galway and Limerick. MCI counts Aer Lingus, An Post and Fyffes among its customers.
