TULSA, Okla., April 23, 2002 — Williams said Monday that it is prepared for the bankruptcy filing of its former telecommunications subsidiary and already has mitigated the impact to Williams’ shareholders through actions related to Williams Communications Group’s structured notes and a network lease obligation.
“As previously disclosed, we have already constructively dealt with the two major contingent liabilities related to Williams Communications Group that would have been triggered by a bankruptcy filing,” said Steve Malcolm, president and chief executive officer of Williams.
“We’ve already written down the receivable from WCGR to approximately 20 cents on the dollar related to the obligations referenced above. We are assessing whether additional non-cash write-downs will be necessary based on our evaluation of WCGR’s current prospects and the details of today’s filing,” Malcolm said.
Currently, the recorded carrying value of these WCGR obligations to Williams is approximately $455 million (written down from $2.3 billion). Additionally, WCGR has an obligation to Williams for the lease of its headquarters building and certain other assets such as airplanes, furniture and fixtures. Williams’ current carrying amount of this receivable is $154 million.
“It is not possible to speculate regarding the ultimate resolution of WCGR’s bankruptcy. As one of three major creditor groups, however, Williams plans to continue to participate in constructive dialogue with the other parties in the hopes that WCGR can work through and emerge from the bankruptcy process in a fashion that yields the maximum possible recovery,” Malcolm said.
Williams, through its subsidiaries, connects businesses to energy, delivering reliable products and services. Williams information is available at www.williams.com .