The market for WorldCom's bank debt slipped a few points falling from the 25-26 range into the 23 context last week. Traders said paper for the bankrupt telecom company fell after AT&T posted weakening revenues for both its fourth quarter and year-end results. Rumors were floating of a seller with $200 million of WorldCom bank debt, but no trades could be confirmed. "Banks are sellers at the 26 level," commented one trader. AT&T reported an 8.6% decline in revenue for its fourth quarter compared to the same period last year. Full year revenue was also down with a decline of 10.4 % from the previous year. Other market players suggested the name fell on reports that David Matlin of MatlinPatterson Global Opportunities Fund is confronting hurdles in his effort to gain control of WorldCom's bankruptcy process. WorldCom's recently appointed acting cfo, Victoria Harker, could not be reached by press time.
WorldCom Slips In Sympathy With AT&T