WASHINGTON, July 1: WorldCom said on Monday it had defaulted on two unsecured credit facilities worth a total of 4.25 billion dollars.

“WorldCom’s lenders under its 2.65 billion-dollar and 1.6 billion-dollar senior unsecured credit facilities have notified the company that events of default had occurred,” it said in a statement.

WorldCom said the creditors now had the right to vote to bring forward the date for repayment of the loans, which would then become immediately due and payable.

“These notifications were anticipated,” said WorldCom president and chief executive John Sidgmore.

“We are engaged in discussions with lenders regarding replacement facilities and remain optimistic that our good working relationships will ultimately reach a positive resolution.”

WorldCom said it also had received a notice halting a programme under which it had been securitizing — or converting into investment securities — income owed but yet to be collected.

Money collected would be used to pay off about 1.2 billion dollars outstanding, it said. “The company believes that the receivables in the programme are sufficient to repay the amounts outstanding.”

Separately, WorldCom also said it received a notice from the Nasdaq exchange saying it had failed to comply with filing and fee requirements and was therefore subject to be delisted.

“The notice said that the company’s securities will be delisted at the opening of business on July 5, 2002, but that the delisting will be stayed if the company requests a hearing, in accordance with Nasdaq rules.”—AFP