Court OKs Williams Reorg Plan

NEW YORK -- Williams Communications Group, Inc. (OTCBB: WCGRQ) announced today that the United States Bankruptcy Court for the Southern District of New York has approved its Plan of Reorganization. The Plan garnered overwhelming support from its Unsecured Creditors and the Secured Lenders, receiving nearly unanimous approval from those who voted. “The Court’s confirmation of our Plan of Reorganization and the vote of confidence from our creditors are critical steps as the Company completes its restructuring and nears emergence from Chapter 11,” said Howard Janzen, chief executive officer of Williams Communications Group. “The diligent efforts of all parties helped shape a Plan which makes WCG a financially stronger company, well-positioned to provide reliable, superior service over the long-term. In particular, the commitment of WCG employees throughout the restructuring process allowed us to continue to provide our loyal customers with the quality network and customer service that is our hallmark.” Under the Plan, the Unsecured Creditors will receive approximately 54 percent of the equity in the newly reorganized Williams Communications. Leucadia National Corporation (NYSE:LUK), which will invest $150 million in the Company and purchased the claims of The Williams Companies for $180 million, will receive approximately 44 percent of the new equity. The Plan also includes a channeling injunction, which could allow holders of securities-related claims up to two percent of the equity of the reorganized company and potential recovery from the company’s officer and director liability insurance policies. As part of the confirmed Plan, a new nine-member Board of Directors will be formed. It will include four directors to be selected by the Committee of Unsecured Creditors, four directors to be selected by Leucadia, and Howard Janzen, CEO of the reorganized Company. The Plan also calls for the Company to transition to the WilTel name over the next two years. Williams Communications Group Inc.