Bankrupt telco WorldCom moved a step closer to emerging from bankruptcy this week when it reached agreement with two sets of creditors, agreeing to increase payments to them. A court hearing on the reorganisation of the company began on Monday, but adjourned to allow the negotiations.
 WorldCom was brought down by an $11 billion US accounting scandal that caused it to file for bankruptcy protection last year. Last month a deal was approved between the company and the Securities and Exchange Commission in terms of which the telco is to pay $750 million to investors who lost money as a result of the fraud.

The new deal between the telco and its creditors is expected to clear the way for WorldCom to emerge from bankruptcy very soon, under the new name of MCI.

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