Breaking his silence a week after WorldCom first revealed overstating its earnings by $3.8 billion, chief executive John Sidgmore vowed to do everything possible to avoid bankruptcy

Breaking his silence a week after WorldCom first revealed overstating its earnings by $3.8 billion, chief executive John Sidgmore vowed to do everything possible to avoid bankruptcy, while acknowledging the firm's fate is at the discretion of its lenders. Speaking at a press conference in Washington, D.C., on Tuesday afternoon, Sidgmore said WorldCom received default notices from some of its lenders, but they had not demanded WorldCom immediately repay any of its $30 billion debt. "We are working with banks even as we speak here, talking about various proposals to restructure," he said. "And we are somewhat optimistic that we will get a proposal, if not two proposals, in hand this week to accomplish that," he said. Sidgmore expressed cautious confidence WorldCom would work out terms with the lenders, adding WorldCom knew the banks would fair better with the company out of bankruptcy. On Monday, two WorldCom lenders holding credit facilities worth a total of $4.25 billion notified the company that they reserved their rights to call the loans in immediately. The company is already the target of U.S. Securities and Exchange Commission (SEC)civil fraud charges and investigations by Congress and the U.S. Department of Justice. The news caused an investor stampede out of WorldCom's already battered shares, sending them down to trade at just pennies a share. Nasdaq informed WorldCom that it would move to delist the company's stock on Friday, but WorldCom can request a hearing to stave off delisting.