Why WorldCom Will Be Left Standing

While it's buried in debt and its growth has cooled, this telecom giant isn't likely to go the way of Global Crossing for several reasons

No company has been rocked harder by the wake of Global Crossing's bankruptcy than fellow telecom giant WorldCom (WCOM ). Worried that the $35 billion Jackson (Miss.) carrier might be the next telecom giant to sink, investors have traded its stock down more than 70% in the past two weeks, to the $6 range. It didn't help that WorldCom recently reported fourth-quarter earnings that plummeted 60% from a year earlier. Neither did the disclosure that CEO Bernard J. Ebbers has borrowed $375 million from his own company to cover margin loans.

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