More problems for WorldCom. A group of 25 banks is suing the telecom giant, saying the company defrauded them of nearly two and a-half billion dollars.
The banks say the fraud happened six weeks before WorldCom publicly announced four billion dollars in accounting irregularities.
A judge denied the banks' request to immediately freeze $2.65 billion of WorldCom's assets.
WorldCom got the money in a credit agreement signed last year with 27 banks. The company would be allowed to borrow, repay and borrow again up to $2.65 billion within a year.
The banks say they wouldn't have agreed to the loans if they knew about WorldCom's accounting problems. Two of the 27 banks are not part of the lawsuit.
Viewers with disabilities can get assistance accessing this station's FCC Public Inspection File by contacting the station with the information listed below. Questions or concerns relating to the accessibility of the FCC's online public file system should be directed to the FCC at 888-225-5322, 888-835-5322 (TTY), or email@example.com.