Fallen telecom star WorldCom has reported further losses for July and August, and asked for a five month extension to come up with a reorganisation plan.

The company also warned that when it emerges from bankruptcy proceedings next year, its shares could have little or no value.

WorldCom is still facing criminal and regulatory investigations in the US over the accounting fraud scandal which led to the world's largest bankruptcy in July.

The company said it is continuing to re-evaluate its balance sheets following the scandal, which could mean further write-offs in the value of its assets.

Worthless

WorldCom believes when the company emerges from bankruptcy proceedings....its existing preferred stock ..will have no value

WorldCom

WorldCom is obliged to file its monthly financial statements to the US Bankruptcy Court as part of the its reorganisation.

The company reported a loss of $429m (�277m) for July and August on revenue of more than $4.8bn (�3.1bn).

WorldCom also repeated its earlier suggestion that it would write down the value of some intangible assets by a further $50bn, as well as the value of some of its property.

In June, the firm reported "accounting irregularities" which overvalued its income by $3.8bn and made it look profitable when it was in fact making a loss.

Two months later, the group revealed a further $3.3bn of improperly reported earnings.

What now?

WorldCom expects to emerge from bankruptcy by March 2003 at the earliest.

But it has now asked the court to extend its deadline for to submit a reorganisation plan from 18 November to 17 April 2003.

The company also warned on Tuesday that by then, its shares could be worth nothing.

"Based on current information and a preliminary analysis of its ability to satisfy outstanding liabilities," said the company, "WorldCom believes when the company emerges from bankruptcy proceedings, its existing preferred stock....will have no value."