WorldCom Feels the Freeze

A quick reorganization and turnaround are looking ever less likely now that a New York judge has put $2.5 billion of its assets on ice

More bad news for WorldCom. On July 17 in New York, U.S. District Court Judge Jed Rakoff ordered a freeze on $2.5 billion of its assets. For 80 days, WorldCom (WCOME ) will be forbidden from selling stock in any of its domestic divisions. These assets are intended to provide some security for the company's creditors, which are owed a total of $28 billion. Rakoff is also presiding over the Security & Exchange Commission's civil case against the telecom giant.

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