Williams Communications Group - WCG Message Board

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Technology Stocks : Williams Communications Group - WCG

WCG 349.92

+1.4%

Jan 23 4:00 PM EST

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To: HEP_Ronin who wrote (593)	2/25/2002 5:08:31 PM
From: James Calladine	Read Replies (1) of 609

THE WCG SITUATION: Probably this situation has some of the characteristics of TSIX, XOXO, GX There is a huge amount of debt. The debt agreements call for the company (probably) to achieve certain revenue targets, not to exceed certain capital expenditure amounts, maintain certain stated financial ratios, etc etc. Whatever these covenants are, WCG obviously is considered by at least some of their creditors to be in violation of their ageements. In such cases the creditors have remedies-such as grabbing all the cash, and so on. This is somewhat different than the average such case, because there is a major equity owner WMB who have also guaranteed apparently some $1 bil of debt. So that might make the prospect of achieving some value for the common shareholders a little easier. We shall see. Namaste! Jim

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