One year after The Williams Companies, Inc., spun off its fiber-optic network subsidiary, its offspring filed for Chapter 11. Leading up to the April bankruptcy filing, Williams Communications, its banks, bondholders, and former parent were able to agree on a plan of reorganization. But the various creditors failed to agree on how much unsecured debt the company actually holds. The former parent claims the amount is $2.4 billion, but the bondholders are investigating whether the number should be adjusted downward. If the parties can't agree, the judge will have to decide.
Kirkland & Ellis partners Robert Buday, Christopher Combs, Eva Davis, Michael Kerr, Adam Merrill, James Sprayregen, Richard Wynne, David Zott, and associates JoLee Adamich, Patricia Cirucci, H. Curtis Keller, and Peter Leeson IV represented the Official Committee of Unsecured Creditors.
This article appeared in its entirety in the July 2002 issue of The American Lawyer.