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TULSA, Okla., March 6, 2002 -- Williams Communications, a provider of broadband services for bandwidth-centric customers, has announced it has reached an agreement with one of its larger creditors, Williams.
Williams has confirmed its obligation to make certain payments with respect to the 8.25 % Senior Notes due in 2004, and, to the extent those payments are made by Williams, certain interest payments will be forgiven and other payments due from Williams Communications to the WCG Note Trust will be deferred until March 2004.
Williams has also agreed to defer, until September 15, 2002, certain payments due to it from Williams Communications. As part of the agreement, Williams Communications has agreed to give its consent in Williams' restructuring of notes issued by the WCG Note Trust.
Williams Communications also announced that it has agreed with its bank group to a formal extension of discussions toward the development of a balance sheet restructuring plan. The agreement to extend discussions until March 27 is based upon the expanded restructuring alternatives the company announced last week.
The company, along with its bank group, has been pursuing a comprehensive resolution to restructure its balance sheet. Current discussions have been expanded to include multiple restructuring options, including the potential benefits of a negotiated Chapter 11 reorganization process, which would support uninterrupted continuation of the business and minimize any impact to customer and vendor relationships, but could result in substantial dilution to the common shareholder. The company may decide to pursue that alternative if it believes it will allow for a more orderly process that maximizes enterprise value.
"As we have previously indicated, Williams Communications continues to have productive dialogue with its banks, and we expect that this dialogue will enable us to meet the current challenges of the telecommunications marketplace and, ultimately, to thrive," said Scott Schubert, Chief Financial Officer for Williams Communications.
About Williams Communications Group, Inc.
Based in Tulsa, Okla., Williams Communications Group, Inc., is a broadband network services provider focused on the needs of bandwidth-centric customers. For more information, visit www.williamscommunications.com .
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