A federal judge gave WorldCom Inc. approval Tuesday for $350 million in debtor-in-possession financing during the company’s bankruptcy.
WorldCom has gained approval for a total of $1.1 billion in DIP financing since filing this summer the largest bankruptcy petition in U.S. history. The Mississippi-based phone and Internet giant initially had indicated it would seek $2 billion in DIP financing but sought a lower amount due to a better than expected cash position, a spokeswoman said.
The financing “will see the company through its Chapter 11 restructuring,” she said. WorldCom anticipates emerging from bankruptcy in mid-2003.
WorldCom has more than $1 billion of cash on hand and has yet to tap any funds under the DIP facility, according to a Dow Jones Newswires article published today.
