* July 21: WorldCom files for bankruptcy protection, listing some$107 billion in assets and $41 billion in debt, on a consolidated basis as of March 31, the largest such filing in U.S. history. CEO Sidgmore says the company plans to emerge from protection within 9 to 12 months. The company will have access to up to $2 billion in funding but does not plan to tap all of it.
* July 29: WorldCom names two specialists from AlixPartners LLC to oversee its reorganization and straighten its finances. Gregory Rayburn
was appointed chief restructuring officer and John Dubel was hired as chief financial officer.
* August 1: WorldCom's former Chief Financial Officer Scott Sullivan and former Controller David Myers are arrested for their role in the scandal. The two were charged in a seven-count complaint accusing them of securities fraud and filing false statements
with the Securities and Exchange Commission.
* August 9: WorldCom's internal auditors have uncovered an additional $3.8 billion in improper accounting, doubling the amount of its known accounting errors to more than $7.6 billion over the past two years.
* August 17: The Washington Post reports that members of WorldCom's board support removing CEO John Sidgmore.
* August 22: News report state that a complex deal with WorldCom accounts for some of the revenue America Online previously announced it may have improperly booked.
* August 26: Salomon Smith Barney, the investment banking firm, discloses that it rewarded some WorldCom executives with IPO stock. Critics said the practice raises concerns because it could amount to an improper reward for WorldCom officials for bringing lucrative banking business to Salomon. The WorldCom executives were able to reap financial gain from selling the IPO stock. WorldCom founder Bernard Ebbers and former CFO Scott Sullivan received shares, according to subsequent news reports.
* September 11: WorldCom chief executive John W. Sidgmore agrees to step aside from his top post.
* September 27:
WorldCom Inc.'s former controller, David F. Myers, pleaded guilty to three counts of conspiracy, securities fraud and making false statements to the Securities and Exchange Commission. Myers is the first WorldCom executive to fall in the largest accounting scandal in U.S. history.
* October 7: Buford Yates Jr., WorldCom Inc.'s former accounting director, pleads guilty to two counts of securities fraud and conspiracy.
* October 10: Prosecutors charge two former finance officials, Betty L. Vinson and M. Normand, with two counts of conspiracy and securities fraud in separate proceedings.
* Nov. 6: SEC expands fraud case against WorldCom Inc., with claims that the company's improper bookkeeping dates back to at least 1999, totaling over $9 billion in fraudulent activity.
* Nov. 21: WorldCom plans to lay off 3,000 workers in coming month in effort to trim company costs and emerge from bankruptcy.
* Nov 27: WorldCom reaches initial settlement with SEC, in which the company must continue to submit to federal oversight. The question still remains whether the company will be subject to a fine.
* Dec. 16: Judges approve employment contract that entitles new CEO, Michael D. Capellas, $20 million over three years.
* Dec. 18: Six WorldCom directors resign.
* Dec. 20: Despite financial woes, WorldCom is awarded contract to provide global communications service to State Department.