Williams Cos. pays $753 million related to former unit lease

<br>TULSA, Okla. (Dow Jones/AP) _ Williams Cos. paid $753 million related to Williams Communications Group Inc.'s purchase of certain telecommunications facilities that it had been leasing. <br><br>Williams

Friday, March 29th 2002, 12:00 am

By: News On 6

TULSA, Okla. (Dow Jones/AP) _ Williams Cos. paid $753 million related to Williams Communications Group Inc.'s purchase of certain telecommunications facilities that it had been leasing.

Williams Cos., an energy concern, said Friday that in return, it would receive unsecured term notes in the same amount from Williams Communications, its former telecommunications unit.

This transaction was Williams Cos.' last major liability related to Williams Communications. Williams Cos. was obligated to the pay the purchase price for asset defeasance program network assets of about $750 million, based on an agreement with Williams Communications in September 1999.

For 2001, Williams Cos. incurred a $1.17 billion charge from discontinued operations for obligations related to gaurantees and payment obligations for Williams Communications, and a $147.5 million loss from operations of Williams Communications.

Williams Cos. had been plagued by problems at the former telecom unit, which is weighing a bankruptcy filing, leaving its one-time parent financially exposed.