State regulators to gauge impact of WorldCom bankruptcy

JEFFERSON CITY, Mo. -- The financial collapse of Worldcom Inc. has prompted state regulators to begin looking at the potential effect on Missouri's telecommunications customers and providers.

The Missouri Public Service Commission said Thursday it was opening an inquiry into the health of Missouri's telecommunications industry.

WorldCom has acknowledged that it improperly accounted for $7.1 billion as profits.

The WorldCom bankruptcy case, filed July 21, is the largest corporate bankruptcy in U.S. history.

"We continue to monitor that situation and how that bankruptcy could impact Missouri telecommunications customers and providers who offer services to WorldCom affiliates," said Kelvin Simmons, chairman of the PSC.

The PSC has asked representatives of WorldCom and many of its affiliates to appear in Jefferson City on Sept. 19 to discuss the status of the bankruptcy and its potential impact.

Companies included in the PSC order are Intermedia Communications; TTI National; Brooks Fiber Communications of Missouri; MCI WorldCom Communications; MCI WorldCom Network Services; MCImetro Access Transmission Services; Metropolitan Fiber Systems of St. Louis; and Teleconnect Long Distance Services and Systems.

"With this case, the commission will be able to determine what actions, if any, could be taken by this commission to protect the public with respect to telecommunications bankruptcies," Simmons said.

WorldCom and its affiliates also have been asked by the PSC to file quarterly reports with the commission regarding the bankruptcy and the state of Missouri operations.

WorldCom's demise caused the Missouri State Employees' Retirement System to lose $11 million in value because of investments in WorldCom.