MCI has formally emerged from U.S. Chapter 11 protection. The emergence, says the company, signifies that MCI's plan of reorganization, confirmed on October 31, 2003, is now effective and the company has begun to distribute securities and cash to its creditors.
With the Chapter 11 process behind it, the company is now officially known as MCI Inc.
"MCI's turnaround is a tribute to the human spirit and the amazing will of our 50,000 dedicated employees," says Michael D. Capellas, MCI president and CEO. "This is a symbolic day for MCI employees, who have remained committed to serving our customers. I feel a great sense of pride for all that we have accomplished together. We are emerging with a new board and management team, a sound financial position, unmatched global assets, a strong customer base and industry-leading service quality."
The company says that industry shifts are playing to its advantage. It notes that the telecommunications industry is going through a period of transformation, and that increased competition, wireless displacement, regulatory restrictions and technological changes make for a tough industry climate. However, despite seismic shifts in the telecom industry, Internet usage is still increasing, people are communicating more often, and in more ways, and computing and communications are converging. This convergence, it says, unquestionably plays to MCI's core strengths.
"The real winner will be whoever is able to provide simple, converged products and services that can manage digitized content on a global IP network securely and reliably," adds Capellas. "MCI is uniquely positioned to do just that, with an end-to-end global communications network spanning 150 countries on six continents."
MCI emerges with a strong enterprise customer base, retaining all of its largest corporate customers as well as signing many new accounts. It says customer focus remains a top priority for the company.
The company notes that in the past six months, long-standing customers, such as DaimlerChrysler AG and Nasdaq have signed new agreements with MCI.
The company reveals that, in the coming weeks and months, it will roll out new products and services, as well as announce several new partnerships that extend its IP leadership position.
"Our emergence is not the finish line, it is the beginning of a new race," says Capellas. "Somewhere between telecommunications and computing there is a new kind of company, and that is what MCI will be."