Williams, SBC wait for a new day in court

In a legal battle that is lingering much longer than expected, Williams’ and SBC's day in court has been postponed yet again.

The two companies went to court on September 5 to determine the status of a temporary injunction granted to Williams to prevent SBC from terminating its contracts with the long-haul carrier.

The September 5 hearing was to be continued in court yesterday after weekend negotiations, but according to a Williams’ spokeswoman it has been postponed.

“The parties are negotiating with the goal of resolving the issues prior to confirmation [of the bankruptcy],” the spokeswoman said. The spokeswoman had not yet been informed of a specific reschedule date.

SBC had expressed interest in “exercising its rights” with regard to the contract between the two companies. Under the terms of the contract, either party has the right to end the agreement in the event that one of the companies changes hands. SBC is alleging that Williams’ spin-off from The Williams Companies in April of last year constitutes a change of hands, even though SBC supported the move at the time.