And another one bites the dust:
biz.yahoo.com
Thursday March 7, 3:19 pm Eastern Time
NYSE Suspends Trading in Williams Communications Stock; Moves to Delist Firm
NEW YORK -- The New York Stock Exchange Thursday suspended trading in Williams Communications Group Inc. stock and said it will seek to delist the company because of its low trading price.
Last Friday, the NYSE said it was reviewing whether Williams Communications should continue to be listed on the Big Board, since the stock has dropped below the NYSE's minimum share-price requirement. Shares of Williams Communications ( WCG) last changed hands at 13 cents.
The NYSE said the communications company can review and appeal its decision.
Last month, Williams Communications said it might file for Chapter 11 bankruptcy protection to reorganize its $5.16 billion debt. Before that, the Tulsa , Okla., company had said it wasn't considering a bankruptcy-law filing or moves that would result in substantial shareholder dilution.
After trying to renegotiate its debt with lenders, however, it warned that its restructuring could result in "substantial shareholder dilution."
The news was not only a blow to the telecommunications carrier, but also to energy concern Williams Cos (NYSE: WMB - news) ., its former parent company, which has backed as much as $2.2 billion of the telecom company's obligations.
The Big Board also halted trading in Williams Cos . (WMB) shares.
This latest news comes as the telecommunications industry continues to struggle with a severe downturn. The segment was shaken by a bankruptcy filing from Global Crossing Ltd. (GX - news) (GBLXQ) that left industry observers keeping a close eye on carriers like Williams Communications, which are facing a glut of fiber- optic capacity and weakened demand.
Companies such as Williams Communications were built to sell capacity on their fiber-optic networks with expectations that demand would soar as the Internet usage grew exponentially. But a weak economy and the dot-com crash decimated the budgets of many corporations. Demand for bandwidth, which industry observers once assumed would grow by 40% to 50% a year, is growing at a rate less than half that. Prices are also falling precipitously because so many companies built networks that added to capacity, hampering the ability of companies such as Williams Communications to pay off their debt. |
