MCI announced a settlement with the Securities and Exchange Commission regarding a civil penalty to be imposed for the company’s past accounting practices.

According to the terms of the deal, the company is liable for a civil penalty of roughly $1.5 billion, paid in $500 million installments – expected to start this fall.

The settlement must still be approved by the U.S. District Court that is overseeing the SEC's lawsuit against the Company as well as by the U.S. Bankruptcy Court that is overseeing the company’s Chapter 11 proceedings.