Wil Com would incorporate in Nevada under reorganization plan
Wednesday, May 22nd 2002, 12:00 am
By: News On 6
TULSA, Okla. (AP) _ Bankrupt Williams Communications Group's reorganization plan would incorporate its holding company in Nevada to save tens of thousands of dollars.
The broadband wholesaler, which filed for Chapter 11 on April 22, filed the proposed reorganization in U.S. Bankruptcy Court in Manhattan late Monday.
The plan also classifies creditors' claims, proposes the Tulsa-based company meet economic goals established by an agent for a consortium of banks and establishes a trustee to settle disputes between creditors.
The company continues to negotiate with creditors on the plan, whose approval would be necessary before court approval, officials said.
Incorporating the holding company _ which filed for bankruptcy leaving the operating wing unaffected _ in Nevada would save the company thousands of dollars each year in state income and franchise taxes, general counsel P. David Newsome Jr. said.
``It's not a gold mine, but it's enough to make it worth considering,'' Newsome said.
However, the incorporation change would not affect the Tulsa operations or the company's 3,200 employees _ 2,300 of which are in Tulsa.
Williams' prearranged bankruptcy plan would divide ownership of the emerging company between bondholders and former parent company, Tulsa-based energy firm Williams Cos.
Bondholders say Williams Cos.' proposed share of the new company could be reduced depending upon what records of its April 2001 spinoff reveal about its contribution to the telecom's failure.
That dispute would be settled by a court-appointed trustee under the proposed reorganization plan.