Williams Communications hopes for quick end to Chapter 11
Williams Communications today announced it is overhauling its bankruptcy reorganization plan and hopes to emerge from Chapter 11 in the fall with the help of $330 million infusion from Leucadia National Corp.
Leucadia has agreed to invest the funds in exchange for a 45% equity stake in the retooled Williams, which plans to adopt a moniker from one of its previous divisions, WilTel. The deal leaves 55% of the equity to be divided among creditors holding Williams’s $6 billion in debt. Williams hopes to emerge from bankruptcy with $500 million in debt and an additional $100 million in mortgage obligations.
Williams Communications filed for bankruptcy in April while its parent company continued to chug along in the energy trading and pipeline business. Once the Communications Group emerges from bankruptcy, however, it will become completely independent of Williams Corp., faced only with the small matter of buying back the WilTel name from WorldCom. Part of the Leucadia deal will sever all debt between parent and child, paying $180 million in cash to eliminate the $2.3 billion the Communications Group owes Williams Corp.
--Kevin Fitchard, Staff Writer
Want to use this article? Click here for options!
© 2013 Penton Media Inc.
In this Webinar you will learn how to create a real-time relationship with your customers, how to proactively improve the customer experience, and how to successfully target and cross-sell services to boost incremental revenue.
- Megabytes to Megabucks, Bandwidth to Business Models: How 4G Is Changing Everything
- How to Unplug Your Redundant Telco Apps To Save Money and Improve Efficiency
- When IaaS Isn't Enough: Service Provider Business Models to Drive Growth and Build Margin
- How to Transform Your Aging Telco Voice Network to Drive New Profits and Revenue
- Creative Licensing Approaches for Telcos & Their Network Equipment Vendors
- Smart Home Opportunity: Balancing Customer Data & Privacy
This paper discusses the rise of Diameter and benefits of Diameter Protocol.
- Conducting The Orchestration – Order Management at the Speed of Business
- Toward a Converged Network Edge
- Beyond Spam – Email Security in the Age of Blended Threats
- 6 Important Steps to Evaluating a Web Filtering Solution
- The Expertise to Protect You from Botnet and DDoS Attacks
- Seeing is Believing – Bridging the Order Visibility Gap
Service providers are under tremendous pressure to turn up new services faster then before and, at the same time,
to do it at less expense - and intra-office fiber is one of the biggest challenges in terms of both cost and service
From the Blog
Join the Discussion
Get more out of Connected Planet by visiting our related resources below:
Connected Planet highlights the next generation of service providers, as well as how their customers use services in new ways.Subscribe Now