Williams Communications emerges from Chapter 11 as WilTel

New York, Oct. 16 - Williams Communications Group, Inc. said it completed its restructuring and emerged from Chapter 11 as WilTel Communications Group, Inc.

WilTel emerged with a $375 million credit facility but no other significant debt other than borrowings related to its headquarters building.

The old Williams Communications shares were canceled.

The new company issued 50 million shares, 54% of which were distributed to unsecured creditors and 44% to Leucadia National Corp. Leucadia invested $150 million in the company and bought Williams Cos.' claims for $180 million. This money will be released on receipt of FCC approvals, expected in the fourth quarter.

The remaining 2% of the equity was set aside for potential recovery by holders of securities-related claims through a channeling injunction approved by the U.S. Bankruptcy Court for the Southern District of New York.

The Tulsa, Okla. communications company also said Howard Janzen resigned as president, chief executive officer and director.

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