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
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
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"
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
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
Send E-Mail to our web site administrator at
© 2002, Neal Nelson & Associates.