Williams Continues Restructuring

Williams Communications continues progress toward financial restructuring, announces closing of ADP facility

April 1, 2002

1 Min Read

TULSA, Okla. -- Williams Communications (OTC Bulletin Board: WCGR), a leading provider of broadband services for bandwidth-centric customers, today announced that it had accomplished two key milestones in its previously-announced restructuring efforts. On March 29, 2002, the Company closed on the purchase of certain important network assets that had been leased from third parties pursuant to an asset defeasance program (ADP). As a consequence, title to those assets has been transferred to Williams Communications. The purchase price of approximately $753 million was paid by The Williams Companies, Inc. (NYSE: WMB) in accordance with a 1999 agreement. In exchange, the Company delivered an unsecured note to The Williams Companies in the approximate amount of $753 million. To continue to conserve cash that would otherwise be devoted to debt service, Williams Communications also announced that it intends to avail itself of the 30-day grace period for the payment of interest on its senior redeemable notes, in the approximate aggregate amount of $91 million on a consolidated basis, that were scheduled for April 1, 2002. The Company is also suspending the quarterly dividend payment on its preferred stock. Scott Schubert, Williams Communications executive vice president and chief financial officer, commented, "Discussions with our creditors continue to be constructive. In the meantime, the $1 billion in cash on our balance sheet at the end of 2001 will be used to assure continued delivery of uninterrupted, high-quality service to our customers, which is in the best interests of all of our constituents." Williams Communications Group

Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like