Windstream Files for Chapter 11 Amid Dispute With Hedge Fund
Windstream Holdings and all its subsidiaries filed for Chapter 11 bankruptcy reorganization in U.S. Bankruptcy Court for the Southern District of New York, the telco announced, amid a dispute with a hedge fund over a bond issue. "The Company intends to use the court-supervised process to address debt maturities that have been accelerated as a result of the recent decision by Judge Jesse Furman in the Southern District of New York against Windstream Services," it said Monday.
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The carrier secured a Citigroup commitment for $1 billion in debtor-in-possession financing. "Following approval by the Court, this financing, combined with access to the cash generated by the Company’s ongoing operations, will be available to meet Windstream’s operational needs and continue operating its business as usual," Windstream said.
The stock, which plunged below $1 last week on a court setback on challenges by Aurelius Capital Management and U.S. Bank, had fallen another 24 percent earlier Monday.