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October 17, 2002 — (WEB HOST INDUSTRY REVIEW) — High-speed communications services company Williams Communications Group
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Inc. (wiltelcommunications.com) said yesterday that it emerged from
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Chapter 11 bankruptcy under a new name, and it will look for a new chief
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executive officer.
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The company said it emerged from bankruptcy with a new $375 million credit
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facility, and no other substantial debt obligations other than those related
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to its headquarters building.
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It was one of several telecommunications carriers to buckle under slumping
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demand, a glut of network capacity and stiff competition.
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The company will now operate as WilTel Communications Group Inc. and will
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continue to offer a full complement of data, Internet and managed services.
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WilTel will focus on offering solutions to a sophisticated customer base
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with complex communications needs, including leveraging the company’s
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strategic relationships with global telecom leaders, while growing its
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customer base and increasing sales momentum for its core offerings which
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include voice and data services.
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Under WilTel’s reorganization plan, existing shares of “WCG” stock have been
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cancelled. The company has issued 50 million new WilTel Communications
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shares for distribution, approximately 54 per cent of which have been issued
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for distribution to unsecured creditors and 44 per cent of which have been
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issued to Leucadia National Corporation.
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Leucadia has invested $150 million in the company and purchased the claims
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of The Williams Companies for $180 million, which funds will be released to
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WilTel and The Williams Companies upon receipt of FCC regulatory approvals
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which are expected to be obtained in the fourth quarter of 2002. The
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remaining two per cent of the new equity has been set aside for potential
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recovery by holders of securities-related claims.
