Because they grossly overstated income, calling over 4 billion dollars of expenses/losses 'capital expenditures' thus making the company look more profitable. On top of that, they had over 30 billion dollars of existing debt...combine the two with itchy investors and nervous creditors doing cash calls and you have massive bankruptcy.

In their official announcement, they specifically said that all operations will continue (the bankruptcy is chapter 11 or restructuring...), that they don't anticipate any changes in employees (people who would work on those internet connections), and that service will continue as normal. They are also supposidly bound by law to give a minimum of 30 days notice if they are to shutdown any network connections.

I would suspect the road to recovery to be long and painful for them and whether or not they make it, UUNET (their ISP part) will move on, if not under worldcom, under someone else...

Neb

http://money.cnn.com/2002/07/19/news...ptcy/index.htm
http://www.mci.com/about_mci/news_room/index.jsp