Williams Communications Group reorganization plan confirmed

New York, Oct. 1 - Williams Communications Group, Inc. said the U.S. Bankruptcy Court for the Southern District of New York approved its plan of reorganization.

The Tulsa, Okla. company said support for the plan was "nearly unanimous" among those unsecured creditors and secured lenders who voted.

Williams Communications expects to emerge from Chapter 11 in October. Among the steps to be completed are obtaining approval from the Federal Communications Commission.

Under the plan, unsecured creditors will receive 54% of the equity of the reorganized company. Leucadia National Corp., which will invest $150 million in the company and purchased the claims of The Williams Cos. for $180 million, will receive 44% of the new equity.

Also included in the reorganization is a channeling injunction, which could allow holders of securities-related claims up to 2% of the equity of the reorganized company and potential recovery from the company's officer and director liability insurance policies.

Over the next two years the company will move to using the WilTel name.

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