Dan Crawford, chairman of Embratel, CEO Jorge Rodríguez and Purificación Carpinteyro, VP regulatory affairs, met Tuesday, June 17, with Communications Minister Miro Teixeira to tell the Brazilian Government that the U.S. bankruptcy court for the southern district of New York has approved a reorganization plan to take MCI out of Chapter 11. Embratel is a wholly-owned subsidiary of MCI, formerly WorldCom.
The reorganization plan, approved May 28, will now be analyzed by creditors and return to the court for implementation.
The plan won?t have negative effects on Embratel, the executives said.
?When a company like MCI goes through this process, the creditors analyze all of its assets to work out the best way of restructuring the business,? Dam Crawford explained. ?The assets include Embratel. I?m happy to say that having completed their analysis the creditors concluded there would be no advantage in selling Embratel.?
According to Jorge Rodríguez, Embratel?s debts before MCI filed for Chapter 11 amounted to 40 billion US Dollars. The total will fall to 5bn USD following approval of the reorganization plan.