The U.S. General Services Administration on Wednesday lifted a ban preventing MCI from bidding on new government contracts about five months after proposing debarment because the No. 2 long-distance phone company lacked the “necessary internal controls and business ethics.”
MCI has hired new management and implemented several new policies to clean up its reputation since the accounting scandal that forced the company to file the largest bankruptcy in U.S. history. In a conference call with reporters last summer, MCI Chairman and CEO Michael Capellas said the company generates 6.3 percent of business through the public sector.
On Thursday, MCI said it plans to reduce its debtor-in-possession credit facility to $300 million from $1.06 billion. The company says it has accumulated cash balances exceeding $5 billion.
MCI hopes to emerge from bankruptcy soon.
