Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Raymond Duray who wrote (15576)	2/25/2002 12:03:45 PM
From: elmatador	Read Replies (1) \| Respond to of 74559

Next, please! Williams Communications may file for Chapter 11 By Jonathan Moules in New York Published: February 25 2002 15:07 \| Last Updated: February 25 2002 16:28 Williams Communications, the broadband network operator, on Monday said it was considering filing for bankruptcy protection, reversing pledges made as recently as this month that it would not follow other telecoms groups into Chapter 11. The company, whose shares have dropped more than 90 per cent this year, also said it was continuing discussions with its bankers to develop a restructuring plan, which would include a 25 per cent cut in costs. Williams Communications said it had broadened its options after concluding on Friday that "certain institutions other than banks" would probably not participate in a restructuring on terms beneficial to all shareholders. It also warned that the options being considered could potentially result in substantial shareholder dilution. The bankruptcy option would allow Williams Communications to continue uninterrupted operation of its business and minimise any impact to customer and vendor relations. However, the company added that any restructuring would result in job losses. If Williams Communications were to follow the option it is now considering, of a negotiated chapter 11 reorganisation, it would follow a string of telecoms groups, including Global Crossing. The industry has been struggling under the weight of massive debt loads, declining rates for services and low demand for high-speed services. Howard Janzen, chairman and chief executive officer of Williams Communications, stressed that the company had more than $1bn cash as of December 31, sufficient to continue operations until 2003 and was meeting its obligations. Shares in Williams fell 19.6 per cent to 41 cents during morning trade in New York.