Ebbers resigned as CEO of WorldCom on April 30, amid the company's $30 billion debt, an SEC probe and the recent announcement that the company would lay off 17,000 employees. Earlier in the year, WorldCom had lent Ebbers $366 million to cover losses on the company's stock.
Sidgmore said that he believed that Ebbers had enough money to repay the loans.
Sidgmore also reaffirmed that the company is also looking into accounting issues around some reserve accounts in 1999 and 2000. That investigation was first disclosed in a filing to the SEC made Monday.
SEC Commissioner Pitt was less than pleased with the filing, calling it "wholly inadequate and incomplete." Sidgmore said that he spoke with Pitt and his staff today and that WorldCom would clarify the filing.
As to the 1999 and 2000 issues, they are being investigated by WorldCom's new auditor, KPMG LLP, as well as by the firm's own internal audit team and by the independent investigator looking into the whole matter, former SEC officer William McLucas, Sidgmore said.
"We are not convinced that the issues that were highlighted for '99 and '00 are problems," he said.
Though WorldCom has over $2 billion in the bank, according to Sidgmore, troubles still loom for the company.
"I'm not going to stand up here and tell you there's no way we're going to end up in bankruptcy," he said, adding that is a route the company is trying to avoid taking.
"America itself has a major stake in our survival" because WorldCom provides large portions of the country's Internet and telecommunication service, he said.
"WorldCom needs the help and the patience and the understanding our of customers .... and the American people," Sidgmore said.