Troubled telecommunication carrier WorldCom Inc. Monday said it will be delisted from the Nasdaq Stock Market before the opening of trading on Tuesday.
The Nasdaq Listing Qualification Panel sent a letter to the Clinton, Mississippi, company saying it would delist the company"s stocks on Tuesday, WorldCom said in a statement. The panel cited concerns over the company"s bankruptcy and the pending restatement of its results from 2001 and the first quarter of 2002, according to WorldCom.
The delisting extends to WorldCom"s tracking stock for its MCI Group subsidiary. Nasdaq will delist WorldCom Group Common Stock, MCI Group Common Stock and MCI Group"s 8 Percent Cumulative Quarterly Income Preferred Securities, Series A, according to the statement. WorldCom said it expects those securities to trade on the over-the-counter market, or "pink sheets," under the symbols WCOEQ, MCWEQ and MCPEQ, respectively.
WorldCom in June disclosed accounting irregularities that amounted to nearly US$4 billion, and the company now faces several investigations and lawsuits over its accounting practices. On July 21 it filed for protection under Chapter 11 of the U.S. Bankruptcy Code but continued operating.
Also Monday, the company shook up its executive ranks, naming a new chief financial officer and chief restructuring officer, the company said in a separate statement.