Williams Communications Stockholder Web Site

Questions & Answers

What is going on now? What happens next? How long will it take?

Now that WCG is in Chapter 11 bankruptcy, there will be a number of hearings, reports and motions over a peroid of time. In a "normal" Chapter 11 bankruptcy the company representatives would be struggling to find enough money to pay off the debtors continue business as a going concern.

In this case the company management has negotiated the sweetheart deal with the banks and the bondholders. The company management will be trying to push through approval of their plan in the shortest time with no changes. The stockholders should be trying to make changes to the plan and slow down the review and approval process.

The faster the process moves, the better for the bondholders and the worse for the stockholders. The slower the process moves the better for the stockholders and the worse for the bondholders.

What is our next step?

The Equity Holders Committee is the next and very important step. The U.S. Trustee in a bankruptcy case will not always appoint an equity holders committee. Without an Equity Holders Committee the stockholders (equity holders) have a very very tough time affecting the final outcome of the bankruptcy process.

Our group needs to convince the U.S. Trustee's office that an Equity Holders Committee makes sense in this case. If an equity holders committee is formed, it must then act quickly and effectively to get some modifications to the company proposed reorganization plan.

Is the stock worthless?

Not yet. If the company plan is approved without modification it will be worthless when the plan is finally approved by the judge (several months from now). If some changes are mede to the plan before the plan is approved, there is a possibility that the stock would have some value. It is too soon to tell what will be the outcome.

Should I sell my stock? Should I hold my stock? Should I buy more stock?

I cannot offer advice on this topic. If changes are made to the "plan" the stock could have value. If the company management suceeds in pushing through their plan with no changes the stock will be worthless. I do not know what the future will bring.

What happens to the company when the bankruptcy process ends?

The company plan allows for the continuation of the Williams Communications company in a very similar form after the bankruptcy process is complete. The major difference is that a month ago the company had substantial debt (mostly in bonds) and the company was "owned" by the current stockholders. If the company's plan is approved without modifications, the "new" company will have very little debt and the current debtors (bondholders and Williams Companies) will own all of the common stock for the "new" company. The current stockholders will own nothing of value in the "new" company.

What about those class action lawsuits?

A bankruptcy filing automatically puts all of those class action lawsuits on hold until the end of the bankruptcy process. Many (most) of the final reorganization plans that come out of a bankruptcy process will deal with such lawsuits as part of the total package.

For example, the bankruptcy plan may allocate a fixed amount of money to settle any and all of the lawsuits pending.

What kind of committee is this?

This is an informal or "ad hoc" committee of Williams Communications stockholders. It is a "committee of the whole". There are no elected officers at this time. Several individuals have come forward and volunteered to help with specific tasks. A willingness to work will entitle one to be a member of the "executive committee".

Who is Neal Nelson? Why is he doing this?

Neal Nelson is a Williams Communications stockholder. He bought most of his stock (100,000 shares) a couple months ago. His average share price is 10 cents per share. Neal is a computer consultant from Chicago that spends a lot of time working at an Army base in Arizona. Neal has been running his own computer consulting business since 1973. His company's web site is at http://www.nealnelson.com

Neal was distressed by the actions of the Williams Communications management. Since he had both the skills and equipment to organize a stockholder group, via the world wide web, he decided to get involved. He is serving as an unpaid volunteer but he will benefit if the stockholders get a better deal in the future.

Does it cost any money to "join" the group.

No. This is a strictly volunteer effort. All time and resources are donated. There are no charges or dues of any kind.

What do I have to do to join this group?

On the main page of the web site there is an option "Stockholders can register by clicking here". This option displays a screen where a stockholder can enter various types of information. The email address and the zip code are the only "required" fields. After the stockholder has entered his/her information, he/she should click the "Process" button on the screen. This completes the registration process.

What use will be made of the information I enter when I join?

The information is being maintained on a secure server in the offices of Neal Nelson & Associates. It will only be used to facilitate communication on stockholder matters. The email addresses will be used to send out notices of significant events. There will be no distribution or other use of the email list. All information supplied will be kept in the strictest confidence.

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