The U.S. Bankruptcy Court for the Southern District of New York approved MCI's settlement with the Securities and Exchange Commission. The settlement calls for a civil penalty to the company of $2.25 billion to be satisfied by a $500 million cash payment and $250 million in common stock to shareholders and bondholders upon emergence from Chapter 11 protection. Coupled with the July 7 approval of the settlement by the U.S. District Court, this ruling resolves all claims by the SEC against the company for its past accounting practices.
The following statement should be attributed to Stasia Kelly, MCI general counsel:
"Today's ruling represents a key milestone as MCI moves toward emergence from Chapter 11 protection. It represents additional validation of all the positive steps the company has taken over the past year to both put its house in order and establish itself as a leader in good corporate governance. We look forward now to completing our confirmation hearing and emerging from Chapter 11 protection."
