Well, this was of course a foregone conclusion, so it serves as no great surprise. Even when you bury massive expenditures with fraudulent accounting, at some point you’ve got to reconcile your debt. For companies like Worldcom, they can escape the effects of having committed fraud by declaring bankruptcy and sucking their creditors along for the ride as unwilling investors. The bigger question is: Is bankruptcy, which has become standard business practise, now a safe harbour being misused by corporate robbers? The answer seems to be YES.
-Ian.