MCI plans to reduce debtor-in-possession credit facility to $300 million

By Jeff Pines

Washington, Jan. 8 - MCI, formerly WorldCom, Inc., plans to reduce its debtor-in-possession credit facility to $300 million from $1.06 billion.

The Ashburn, Va.-based telecommunications provider says its cash balances are now above $5 billion and doesn't think it will need to borrow any money.

Reducing the size of the facility will reduce the company's commitment fees.

MCI said it believes it will only need to facility to issue letters of credit. The company has $80 million in letters of credit outstanding.

The company expects to emerge from Chapter 11 sometime in the first quarter, according to an informed source.

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