TULSA, Okla., March 6 -- Williams Cos. will restructure a $1.4 billion debt obligation, ending the possibility that it could have been forced to pay the entire amount in 60 days. The company said it will make semiannual interest payments on the debt and will assume responsibility for full payment by 2004.
The debt belonged to Williams Communications Group, a former subsidiary of Williams Cos. When it spun off the subsidiary, Williams Cos. agreed to pay the $1.4 billion within 60 days if Williams Communications sought bankruptcy protection or couldn't service the debt. Williams Communications is now considering bankruptcy.