Six months after seeking protection from its creditors, Williams Communications Group Inc. is emerging from bankruptcy as WilTel Communications Group Inc. The reorganized company also will be looking for a new head honcho.

The reorganized company has exited bankruptcy proceedings with a new $375 million credit facility and no other substantial debt obligations other than those related to its headquarters building.

On September 30, the U.S. Bankruptcy Court for the Southern District of New York approved the reorganization plan which will give unsecured creditors a 54 percent equity stake in the company. For its $330 million investment, Leucadia National Corp. will receive a 44 percent stake. Leucadia will pay $150 million to lower bank debt, with the remaining $180 million will be going to Williams' parent Williams Companies.

As is the case in many restructurings, current Williams shareholders will get zip. A securities fraud lawsuit is pending in Tulsa, Okla. In the lawsuit, some shareholders allege that the company's directors and officers "knew or recklessly disregarded" the state of the economic environment when Williams Communications was spun off in April 2001. Parent Williams spun off the unit to unload its debt, according to the suit. As part of the restructuring plan, Williams Communications has set aside 2 percent equity to defend itself against the claims.

In conjunction with the bankruptcy exit, company President, CEO and Director Howard Janzen has resigned from the company. The company did not provide details surrounding his departure, but thanked him for leading the company through the bankruptcy proceedings. A search for Janzen's successor is underway.