Williams Communication investors lose with bankruptcy
Tuesday, April 23rd 2002, 12:00 am
By: News On 6
The stockholders of Williams Communications will most likely lose all of their investment - but it didn't happen overnight.
News on Six reporter Emory Bryan says the stock price dropped again after the bankruptcy filing - but it's been dropping for months. After a high near $40 when the stock was issued, Tuesday it's still trading - and closed below six cents a share.
The final blow was the bankruptcy filing - but shareholders have been watching their investment dwindle for a while. Chapter 11 all but assures they'll lose what little value was left. Dan Carone, Williams Communications shareholder, "I hate to lose it this way, this company is not in bad enough shape that they're doing what they should do, they should take some care of the shareholder.â€
The current set of stockholders are probably wiped out - but the company can round up new investors - and issue new stock, after the bankruptcy is done. Some companies have - and analysts think that's a likely scenario for Williams Communications.