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  1. #1
    Join Date
    Dec 2001
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    Worldcom Files Chapter 11 Bankruptcy

    Whoop ... there we go.
    another telco filing Chapter 11

    PHILADELPHIA (Reuters) - WorldCom Inc. filed the largest U.S. bankruptcy on Sunday after the long-distance telephone and data services company buckled under a $3.85 billion accounting scandal and a mountain of junk-rated debt.

    Source (there are many more covered articles... have a look at ccn and so on):
    http://www.reuters.com/news_article....toryID=1228763
    Last edited by BiGWill; 07-22-2002 at 06:31 AM.
    In just two days, tomorrow will be yesterday.

  2. #2
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    Jul 2002
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    Sad but thats what bad management and cooking the books does.

  3. #3
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    Jun 2002
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    Is this the beginning of the "Domino" factor!
    Ask: WebHost, How old are You?
    What a tangled web we weave, when first we practice to deceive!
    --------------------------------------------------------------------------

  4. #4
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    The United States government is already checking 13 other companies for similar violations and there are probably more that will be found committing fraud. The execs that make this crime happen should be locked up for a long time. Due to their stupidity, the economy is going further down the tubes and with this latest announcement, I can only imagine what will happen tomorrow on Wall Street.
    Mark Blair

  5. #5
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    Nov 2001
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    so will this turn out like yipes? just a way to get money or whatever? could somone share some information on exactly what will come of this?

  6. #6
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    Well, my non-professional opinion is that this will cause some chaos on the stock market as investors start to worry about the same things we do. The only difference is they will sell their stocks causing the market to go down even more.

    As far as WorldCom is concerned, if they were able to emerge from bankruptcy successfully there will be other companies that will buy out their customers, equipment, services, etc. They won't just shut down operations and leave it at that. But again, they filed for Chapter 11 bankruptcy which is a "rebuilding phase" to try to get out of the problems they are currently in. They could be successful. Only time will tell.

    Again, this is just what I see happening and I hope for the best so others that utilize their services won't be affected.
    Mark Blair

  7. #7
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    I hope Worldcom will get out of this un damaged, not because i have some servers using uunet bandwidth (lol..)..

  8. #8
    Join Date
    May 2002
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    604
    Originally posted by Icutwo
    Is this the beginning of the "Domino" factor!
    That's effect.

  9. #9
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    Jun 2002
    Location
    Sydney, Australia
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    Originally posted by Icutwo
    Is this the beginning of the "Domino" factor!
    Everyday as I get breakfast and read the newspaper I think to myself "Who will be next".

    I read this morning in the business section that "Johnson & Johnson" are being investigated although it didn't go into specific details.

    I wonder who it will be tomorrow.

    --Shaun
    Shaun Ewing
    http://shaun.net

  10. #10
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    Indiana
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    Although this was used in a humorous situation, I think what Leno has been joking about for a while is that if we a $19.95 video turned back into Blockbuster by the time its due, we have people calling our house and have collection agencies after us.....but if someone like Enron and WorldCom go and accidentally "misplace" $4billion, nothing happens.

    There will no doubt be more of these types of situations as more companies are investigated. Although I am not currently an investor in the stock market, I know the affect this can have (and is having) on the current economy. It was bad enough before, but now with all of this....
    "Last year, some resourceful software enthusiasts cracked Sony Music's proprietary technology simply by scribbling around the edges of the disc with a Magic Marker pen, thus enabling playback on any device." - news.com

  11. #11
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    My guess is that the next one will be someone like AOL. They seem to be doing some management shuffles here recently. If I was a CEO of a company that was burning (because if they are "cooked", they are done right ) the books, I'd be trying to get out as fast as possible.

    *throws 2 pennies*
    "Last year, some resourceful software enthusiasts cracked Sony Music's proprietary technology simply by scribbling around the edges of the disc with a Magic Marker pen, thus enabling playback on any device." - news.com

  12. #12
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    Originally posted by WebmastTroy
    My guess is that the next one will be someone like AOL. They seem to be doing some management shuffles here recently. If I was a CEO of a company that was burning (because if they are "cooked", they are done right ) the books, I'd be trying to get out as fast as possible.

    *throws 2 pennies*
    Don't forget to give yourself a $10m bonus before you leave for good measure (as many seem to be doing before their companies crash and burn leaving employees jobless).

    --Shaun.
    Shaun Ewing
    http://shaun.net

  13. #13
    Join Date
    Nov 2001
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    Originally posted by shaunewing


    Don't forget to give yourself a $10m bonus before you leave for good measure (as many seem to be doing before their companies crash and burn leaving employees jobless).

    --Shaun.
    they should goto jail for doing such scandals

    like enron etc...

    did anyone ever take consequences for the ernon thing and others? just currious as I never followed up on it

  14. #14
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    Originally posted by zdwebhosting


    they should goto jail for doing such scandals

    like enron etc...

    did anyone ever take consequences for the ernon thing and others? just currious as I never followed up on it
    I know they should, the worst they seem to get is a slap on the wrist and being told "Sorry, you can't run a company again" - as seems to be happening here in Australia.

    Some even have the audacity to go and start up similar companies all over again in the hope that gullible people will trust them with their business so they can rip them off again.

    --Shaun.
    Shaun Ewing
    http://shaun.net

  15. #15
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    Originally posted by zdwebhosting
    they should goto jail for doing such scandals
    I totally agree. I heard someone say that "although these were scandals, the shareholders and investors don't have any chance of getting any of their lost money back" even when these CEOs are walking about with tens of millions of dollars.

    If the cause of the downturn of these companies is a scandal on the CEOs part, this 'peircing the corporate veal' should come into effect. Mansions, multiple cars, HUGE paychecks....come on. Some people lost retirements plans and all of their investments in these companies....all because of a few select people in a company that thought I'd be funny to screw a lot of people over.

    <---- doesn't do justice for what I'm feeling, and I WASN'T EVEN AFFECTED BY THIS! (not directly, anyway)

    "Last year, some resourceful software enthusiasts cracked Sony Music's proprietary technology simply by scribbling around the edges of the disc with a Magic Marker pen, thus enabling playback on any device." - news.com

  16. #16
    Join Date
    Jun 2001
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    Michigan
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    Well, I thought something would happen and here's proof...

    http://money.cnn.com/2002/07/22/mark...york/index.htm

    Everyone is running scared due to all these companies going bankrupt and being caught committing crimes of fraud and deception. Let's hope things turn around because it isn't looking pretty right now.
    Mark Blair

  17. #17
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    too late

  18. #18
    Am I the only one that bought Worldcom stock when it was single digits?

  19. #19
    Join Date
    Nov 2001
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    1,262
    Originally posted by MBNapier
    Am I the only one that bought Worldcom stock when it was single digits?
    how much did you buy?

  20. #20
    Originally posted by zdwebhosting


    how much did you buy?
    5,000 shares

  21. #21
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    Jul 2002
    Location
    England, UK
    Posts
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  22. #22
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    Aug 2001
    Location
    California
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    you are not the only one, I bought shares at $.10

    -Steven
    http://www.insiderhosting.com
    BGP Blend of Telia, GTT, Zayo, and Cogent in One Wilshire, Los Angeles!
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