Williams, SBC come to terms

After a month-long battle in and out of court, Williams Communications and SBC Communications have agreed to resolve their dispute and plan to preserve their existing service agreement.

The two companies agreed to extend the temporary restraining order preventing SBC from terminating or threatening to terminate the Master Service Agreement (MSA) between the two companies until after Williams emerges from bankruptcy.

As part of the proposed order between the two companies, the parties also agreed to release all outstanding legal claims against each other.

Williams confirmation hearing is set for September 30, according to a Williams spokeswoman. The company plans to issue a release regarding the dealings with SBC shortly, the spokeswoman said.

Last month, Williams petitioned and won a temporary injunction preventing SBC from making changes to the status quo of the MSA. SBC had expressed interest in “exercising its rights” of the MSA following Williams Communications’ spin off from The Williams Group of companies.

The health of the partnership between the companies is contingent upon Williams’ $150 million investment from Leucadia Corporation.

Under the terms of the original Master Alliance Agreement, SBC could "exercise its rights" for a number of reasons, which were outlined in their original objection to the Temporary Restraining Order.