Reorganization as it appears in the headline is reference to reorganization of the company under the bankruptcy code. It is a term of art.
In short, it means the company will reorganize it's ownership and it debt. In this process, it will put forth a plan for payment of stock/shareholders and other creditors both secured and unsecured and a business plan that will show it can be profitable. The business plan must be approved by the courts and the pay off of debt needs the support of creditors.
As far as I am concerned, the company has always been a scandal. One only need look at its past business practices - slamming customers, double billing, rough treatment of customers - to see they should have gone out of business a long time ago.
MCI World Com...the sooner you die the better.