July 4, 2002	Thursday	Rabi-us-Sani 22,1423

NEW YORK, July 3: Share prices of ailing telecommunications carrier WorldCom Inc. more than doubled on Wednesday, although to just 24 cents, a day after the company’s new boss apologized for the accounting scandal gripping the company.

John Sidgmore, who took the reins of the company two months ago, said a bankruptcy filing by the Clinton, Mississippi-based company is dependent on whether it can successfully negotiate new lines of credit with its lenders.

WorldCom, the second-largest U.S. long-distance telephone company that also carries half the world’s e-mail, has about $2 billion in cash available and no major customers have fled to rivals, Sidgmore said.

One analyst said the rise in the stock could be a result of short-sellers covering their positions, or others are speculating that WorldCom could get additional credit lines and avoid bankruptcy.

“I don’t think there’s any value in the equity,” said Patrick Comack, an analyst at Guzman & Co. who has a “sell” rating on the shares and does not own any WorldCom stock. “I guess some people are speculating they might be able to get new credit lines and avert bankruptcy.”

Meanwhile, the judge in the federal accounting fraud suit against WorldCom Inc. appointed a former Securities and Exchange Commission chairman to monitor company document retention and prevent unwarranted payments to officers and employees.—Reuters