NEW YORK (CNN/Money) - WorldCom Inc. President and CEO John Sidgmore attempted late Wednesday to fend off bankruptcy rumors when he pledged that the troubled telecom has enough cash to survive.

Sidgmore said Wednesday that WorldCom's restatement of $3.8 billion for the past five quarters would have no impact on the company's cash flow for 2001 and first quarter 2002. Sidgmore, who assumed the helm of WorldCom in April, made the comments to employees in a video that was made public late Wednesday.

Clinton, Miss-based WorldCom is taking numerous steps to ensure its survival, including plans to sell its wireless assets and downsize its workforce by 17,000. These actions will create $2 billion in cash savings Sidgmore said Wednesday.

The company, which held a meeting with its lead banks in New York on Tuesday, has also fired Chief Financial Officer Scott Sullivan and accepted the resignation of its Senior Vice President and Controller David Myers.

"Underneath all of this is a company with $30 billion in revenue, 25 million customers and the largest international network in the world," Sidgmore said. "I am convinced that by focusing on these steps WorldCom can emerge a stronger and more competitive force."

Late Tuesday, WorldCom rocked the financial world when it revealed the $3.8 billion accounting scandal for overstating cash flow over the last five quarters. Sidgmore said a routine internal audit determined that the accounting method used by WorldCom did not comply with generally accepted accounting principles (GAAP).

WorldCom's was hit with more bad news Wednesday when the Securities and Exchange Commission filed a civil lawsuit against the company, alleging the company engaged in fraud for hiding the $3.8 billion in losses.

Shares of WorldCom were halted Wednesday on the Nasdaq. The stock will trade Thursday as WCOME because it no longer meets Nasdaq listing requirements.

"This has been a very tough week for WorldCom but our intention is to be proactive and go after these issues," Sidgmore said.

WorldCom has asked KPMG to conduct a comprehensive audit and until then will issue unaudited financial statements for 2001 and first quarter 2002.

News of the restatement caused many to believe that WorldCom was on the verge of filing for Chapter 11 bankruptcy protection. WorldCom is looking for about $4 billion in financing but some of its main bank lenders, including Bank of America, J.P. Morgan and Citigroup, are refusing to loan them any more, banking sources told CNN/Money.

"They will have to file bankruptcy in a matter of days," a person familiar with the situation said.

But other persons familiar with matter said it was too soon to tell if WorldCom will file Chapter 11. "There are several options out there for WorldCom," the person said. "They can get some short-term financing."