MCI, the second-largest US long-distance telephone carrier after AT&T, is asking the federal bankruptcy court for a 60-day extension to complete its reorganisation plan and emerge from bankruptcy.
MCI, which had been due to complete the plan by the end of this month, said it would use the extra time to prepare its financial statements for 2002 and 2003.
The company, which changed its name from WorldCom after filing for Chapter 11 protection in 2002 in the wake of the biggest accounting fraud in US history, must restate about $11 billion (€8.6 billion) in improper accounting. It is a significant player in the Republic's corporate telecoms market.
Other than the financial statements it must file with the Securities & Exchange Commission, MCI said it had finished all significant tasks related to bankruptcy. The company has also secured approval from its creditors.
"We have made incredible progress on the reconstruction of our financial statements, but it is much more important for us to get them done correctly rather than quickly," said Mr Bob Blakely, MCI executive vice-president and chief financial officer.
After filing for bankruptcy in 2002, MCI hired Mr Michael Capellas, former chief executive of Compaq, as chairman and chief executive. Mr Capellas has added outside directors to MCI's board, persuaded the government to restore its access to bidding on government contracts and rewritten its ethics policies. The revamped MCI will emerge from bankruptcy having shed $36 billion in debts and with more than $5 billion in cash, putting it in a stronger financial position than many of its competitors.
