Williams Cos. to Take Over Debt Payments on Former Unit's Notes

Moving out of the way of a possible debt train wreck, Williams Cos.(WMB Quote) agreed to take over interest payments on $1.4 billion of bonds issued by its former telecommunications unit and include the liabilities on its balance sheet.

The notes were issued by a unit of Williams Communications(WCG Quote) but would've become the former parent's problem if various business-condition triggers were activated. Williams Communications is considering a bankruptcy filing to restructure its debt. Williams Cos. spun off the communications subsidiary in 2000.

Following negotiations with noteholders, Williams Cos. agreed to make semiannual interest payments on the $1.4 billion WCG Note Trust notes. The debt, which matures in March 2004, will be reflected on Williams' balance sheet in 2002. Williams said the note won't be affected if Williams Communications business conditions changes. ...