Thursday, April 16, 2020

Frontier Files for Chapter 11 Bankruptcy Protection

Frontier Communications filed for Chapter 11 bankruptcy late Tuesday evening and said it would continue to serve customers while restructuring. The move was expected due to the company’s high debt load of more than $17 billion, according to Bloomberg.

The company said it’s entered into a restructuring support agreement with bondholders representing more than 75 percent of Frontier’s $11 billion in outstanding unsecured bonds. The plan is expected to reduce the company’s debt by more than $10 billion and provide “significant financial flexibility” to support continued investment in Frontier’s long-term growth.

Frontier and its direct and indirect subsidiaries voluntarily filed petitions under Chapter 11 of the United States Bankruptcy Code in the Southern District of New York. “We are pleased that constructive engagement with our bondholders over many months has resulted in a comprehensive recapitalization and restructuring. We do not expect to experience any interruption in providing services to our customers,” said Robert Schriesheim, Chairman of the Finance Committee of the Board of Directors. Continue Reading

No comments:

Post a Comment