Creditors approve WilCom reorganization

(Tulsa, Oklahoma-AP) -- Creditors have approved the reorganization plan of bankrupt telecom Williams Communications Group. <br><br>The plan would divide ownership of the emerging Tulsa, Oklahoma-based

Thursday, September 26th 2002, 12:00 am

By: News On 6

(Tulsa, Oklahoma-AP) -- Creditors have approved the reorganization plan of bankrupt telecom Williams Communications Group.

The plan would divide ownership of the emerging Tulsa, Oklahoma-based broadband wholesaler between bondholders, an investment bank and shareholders.

Banks, bondholders and owners of claims by former parent Williams Companies overwhelmingly approved the plan yesterday in a New York bankruptcy court.

The company filed for bankruptcy April 22nd, claiming assets of six billion dollars and debts of more than seven billion dollars. It expects to emerge from court protection next month.

The bankruptcy judge also approved Williams' settlement with San Antonio-based SBC Communications over SBC's efforts to end a contract between the two companies. SBC is Williams' largest customer, accounting for about 40 percent of its business last year. The dispute had been an impediment to Williams' reorganization.