WorldCom Defaults On Loans, Stock Plummets

The carrier also must pay $1.2 billion under its accounts receivable securitization program. The payment and defaults come at a time when industry pundits question WorldCom's ability to secure the additional $5 billion in loans it is currently pursuing and to avoid declaring bankruptcy.

WorldCom's stock took a beating Monday morning after being halted by the Nasdaq last Tuesday. As of 2:15 p.m. (EDT) Monday, WorldCom's stock was trading at 6 cents per share, a 93 percent drop from the previous Tuesday's close of 83 cents per share.

WorldCom was also informed that it would be delisted by Nasdaq this Friday. The delisting could be delayed if the carrier requests a hearing.

Last week, the Securities and Exchange Commission filed fraud charges against WorldCom for hiding $3.8 billion in expenses during 2001 and first-quarter 2002. WorldCom's audit committee has since widened the review of its financial records into 1999 and 2000 and has brought in KPMG to assist with the review.