AT&T Corp. has outlined details of its major restructuring plan, saying it intends to move most of its massive debt load to its broadband and business divisions, according to press reports.
According to a Securities and Exchange Commission filing on Friday, AT&T plans to assign the bulk of its debt to its broadband division, which will get $28.4 billion in debt. AT&T reported the broadband unit had revenue of $8.4 billion last year and a net loss of $5.4 billion. Business Services, which provides voice and data services to corporate customers, will carry $27.1 billion in debt. The consumer long-distance division will get $4 billion in debt, and AT&T Wireless Group, which is in the process of being split off from AT&T, will get $5.5 billion.
The debt loads are based on last year's $65 billion debt level and don't incloude $17.5 billion in debt that AT&T has incurred through its restructuring plan.
The telecom giant indicated it's "on track" with plans to break itself into separate wireless, broadband, business and consumer long-distance companies. It plans to hold a special meeting in the next few months to ask for shareholder approval of the plan, including creation of two tracking stocks.