Two more telcos hit the bankruptcy trail

NEWS Two more US telcos are teetering on the brink of bankruptcy. Williams Communications and Mpower have both said they are considering filing for Chapter 11 protection, joining a list of bankruptcies which already includes such companies as Global Crossing and McLeodUSA. Only a few weeks ago Williams said that it would not have to follow its competitors into Chapter 11, but has since been hit hard by investors' current dim view of telecoms companies in its attempts to secure additional funding. Mpower - which has lost 99.5 per cent of its value since reaching a peak of $2.1bn in July 2000 - is likely to file for bankruptcy protection at the end of March.