8-KOther Events

WILLIAMS COMPANIES, INC. 8-K Report (Apr 25, 2002)

Filed April 25, 2002For Securities:WMB

Summary

This 8-K filing from The Williams Companies, Inc. (WMB) on April 25, 2002, addresses the anticipated bankruptcy of its former telecommunications subsidiary, Williams Communications Group, Inc. (WCGR). WMB has taken steps to mitigate the financial impact on its shareholders by addressing WCGR's structured notes and network lease obligations. The company reports that the recorded carrying value of these WCGR obligations to WMB has been significantly reduced to approximately $455 million from $2.3 billion. Additionally, WMB has a receivable of $154 million related to WCGR's lease of WMB's headquarters and other assets. WMB is currently evaluating if further non-cash write-downs are needed based on WCGR's bankruptcy proceedings.

Key Highlights

  • 1Williams Companies, Inc. (WMB) is prepared for the bankruptcy filing of its former subsidiary, Williams Communications Group, Inc. (WCGR).
  • 2WMB has taken actions to mitigate the impact of WCGR's bankruptcy on its shareholders.
  • 3The carrying value of WCGR obligations to WMB has been reduced to approximately $455 million from $2.3 billion.
  • 4WMB has a $154 million receivable from WCGR related to the lease of its headquarters and other assets.
  • 5The company is assessing potential further non-cash write-downs based on WCGR's bankruptcy filing details and prospects.
  • 6This filing includes a press release dated April 22, 2002, announcing these matters.

Frequently Asked Questions

This filing is primarily to inform investors that Williams Companies, Inc. (WMB) is prepared for the bankruptcy of its former telecommunications subsidiary, Williams Communications Group, Inc. (WCGR), and has taken steps to mitigate the financial impact.

WMB's recorded carrying value for WCGR obligations has been written down to approximately $455 million. Additionally, WMB has a $154 million receivable from WCGR for the lease of its headquarters and other assets.

Yes, the carrying value of WCGR obligations has already been written down significantly from $2.3 billion to $455 million. The company is currently assessing if further non-cash write-downs will be necessary.

It means WMB has already implemented measures, such as writing down the value of its claims and receivables related to WCGR, to reduce the potential financial losses that could affect WMB's shareholders as a result of WCGR's bankruptcy.