Updated from 9:56 a.m. ESTWilliams Communications ( WCG) is considering filing for Chapter 11 bankruptcy as part of an effort to restructure its balance sheet. The company said it has been holding talks with its banks, and several options have been discussed. In addition, Williams has authorized its legal and financial advisers to discuss restructuring options with certain noteholders. The options now being considered could potentially result in "substantial shareholder dilution," the company said. The company plans to lower its cost structure, including by means of workforce reductions, with any restructuring plan it formulates.