US – Bloomberg/NY Times – MCI, which emerged from the largest bankruptcy case in history in April, is suing its former chief executive, Bernard J. Ebbers, to recover $408 million in loans.
The company, based in Ashburn, Va., and formerly known as WorldCom, is also seeking to dismiss Mr. Ebbers’s $12 million claim against it, according to the suit filed yesterday in United States Bankruptcy Court in New York.
“Ebbers repeatedly requested that WorldCom loan funds to him and/or guaranty his financial obligations to third parties,” MCI said in the lawsuit. “WorldCom received less than reasonably equivalent value for the agreements. Through this action, MCI seeks payment of all amounts due.”
Ebbers, 62, is accused of masterminding an $11 billion accounting fraud that led to the telephone company’s bankruptcy. His federal trial is set for Nov. 9. Mr. Ebbers pleaded not guilty last month to charges of conspiracy, securities fraud and filing a false statement with the Securities and Exchange Commission.