WorldCom in £1bn refinancing deal

Banks give telco some room for manoeuvre

By Graham Hayday, 20 May 2002 08:45

NEWS Struggling US telco WorldCom has struck a deal with its banks which will help ease its liquidity crisis. The company has reached an agreement with the banks over a revised £1bn programme which will allow it some breathing space to work out a detailed, longer-term refinancing package, according to the FT. The newspaper also claims that WorldCom is likely to win support for a new $5bn facility, which will allow it more time to restructure its business and convince the financial markets it can survive.

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