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
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