Williams post loss, won’t file Chapter 11

Williams Communications today said it lost $12.8 million in fourth quarter and $372 million on the year, including a $215 million charge related to the bankruptcy of CLEC Winstar. At the same time, Williams said a group of banks notified the company that it may be in default under its credit agreement.

Unaudited fourth-quarter consolidated revenues came in at $330.3 million, an 11% sequential increase compared to third-quarter 2001 and a year-over-year increase of 28%. Much of the growth was attributable to a 12% sequential jump in network-services revenue, which hit $302.8 million.

Howard Janzen, chairman and CEO of Williams Communications, said the company said the company strongly disagrees with the banks’ contention. However, during a conference call with analysts this morning, he refused to detail the point of contention, only saying that it was part of a standard set of warranties included in any loan agreement.

“It’s also an assessment that is probably more qualitative than quantitative,” said Janzen.