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GlobalAxxess Announces Intent to Swap With WCGRQ Shareholders

TULSA, Okla., May 8 /PRNewswire/ -- GlobalAxxess Holdings has announced its
intent to submit a plan to the stockholders of Williams Communications Group
("WCG" Ticker Symbol "WCGRQ") that will protect their interests by swapping WCG
shares for privately-held shares of GlobalAxxess. GlobalAxxess intends to
submit a bankruptcy bid for WCG in such a manner that the WCG stockholders
would not be wiped out. According to the current reorganization plan that was
filed as the Chapter 11 bankruptcy it is intended to wipe out the economic
interests of all out existing shareholders. See .
The Company intends to offer stock swap agreements that the WCG stockholders
will be included in a reorganization plan that is sponsored by GlobalAxxess on
behalf of WCG and its shareholders. Such swap agreements would be contingent
upon bankruptcy acquisition of WCG by GlobalAxxess and subject to reaching
agreements that would resolve matters with creditors, equity holders and other
interested parties.
The GlobalAxxess swap offers will be available to holders of the publicly
traded shares, the WCG employees who would suffer loss to their 401(k) plans
under the proposed reorganization, and the ERISA fraud claimants that have
already filed suit against The Williams Companies and contemplating such action
against WCG. See .
GlobalAxxess has indicated to WCG its desire to submit a proposal that would
acquire the company and implement a comprehensive workout with creditors and
shareholders but was not allowed into the negotiations prior to the April 22
bankruptcy filing. On April 12, GlobalAxxess notified WCG and legal counsel
for the Unofficial Creditors Committee that a higher GlobalAxxess offer was
open for discussions but the negotiations remained in "lock up" and a higher
offer was not considered. As part of that bankruptcy filing, it was announced
that the WCG equity holders would receive nothing in the proposed
reorganization and the Williams Companies had offered $200 million and a
conversion of creditor debt into equity shares of a new reorganized entity that
would be owned by The Williams Companies and WCG creditors.
Preliminary discussions between GlobalAxxess and creditor representatives
commenced May 7.
GlobalAxxess is engaged in the acquisition of multiple networks and
consolidation of the assets into one operating company to deliver a broad range
of services. GlobalAxxess believes that its consolidation approach will
strengthen the surviving companies well beyond any standalone plan and build
greater value for stockholders and creditors.
Interested shareholders should register at the Williams Communications
Shareholder Web site at .
GlobalAxxess is a privately held company and an initial public offering is
planned for 2004 if market conditions permit. At time of an IPO, much of the
losses of the WCG equity holders should be recoverable as well as those
creditors who convert part of their claims into an equity stake during the
reorganization process.
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