Oct, 2002 : Williams Communications Emerges from Bankruptcy
📅 - High-speed communications services company Williams Communications Group Inc. (wiltelcommunications.com) said yesterday that it emerged from Chapter 11 bankruptcy under a new name, and it will look for a new chief executive officer.
The company said it emerged from bankruptcy with a new $375 million credit facility, and no other substantial debt obligations other than those related to its headquarters building.
It was one of several telecommunications carriers to buckle under slumping demand, a glut of network capacity and stiff competition.
The company will now operate as WilTel Communications Group Inc. and will continue to offer a full complement of data, Internet and managed services.
WilTel will focus on offering solutions to a sophisticated customer base with complex communications needs, including leveraging the company's strategic relationships with global telecom leaders, while growing its customer base and increasing sales momentum for its core offerings which include voice and data services.
Under WilTel's reorganization plan, existing shares of "WCG" stock have been cancelled. The company has issued 50 million new WilTel Communications shares for distribution, approximately 54 per cent of which have been issued for distribution to unsecured creditors and 44 per cent of which have been issued to Leucadia National Corporation.
Leucadia has invested $150 million in the company and purchased the claims of The Williams Companies for $180 million, which funds will be released to WilTel and The Williams Companies upon receipt of FCC regulatory approvals which are expected to be obtained in the fourth quarter of 2002. The remaining two per cent of the new equity has been set aside for potential recovery by holders of securities-related claims.
The company said it emerged from bankruptcy with a new $375 million credit facility, and no other substantial debt obligations other than those related to its headquarters building.
It was one of several telecommunications carriers to buckle under slumping demand, a glut of network capacity and stiff competition.
The company will now operate as WilTel Communications Group Inc. and will continue to offer a full complement of data, Internet and managed services.
WilTel will focus on offering solutions to a sophisticated customer base with complex communications needs, including leveraging the company's strategic relationships with global telecom leaders, while growing its customer base and increasing sales momentum for its core offerings which include voice and data services.
Under WilTel's reorganization plan, existing shares of "WCG" stock have been cancelled. The company has issued 50 million new WilTel Communications shares for distribution, approximately 54 per cent of which have been issued for distribution to unsecured creditors and 44 per cent of which have been issued to Leucadia National Corporation.
Leucadia has invested $150 million in the company and purchased the claims of The Williams Companies for $180 million, which funds will be released to WilTel and The Williams Companies upon receipt of FCC regulatory approvals which are expected to be obtained in the fourth quarter of 2002. The remaining two per cent of the new equity has been set aside for potential recovery by holders of securities-related claims.
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