Windstream Welcomes Court OK of Initial Chapter 11 Motions as Uniti Watches Situation
Windstream said it's pleased by court approvals of its "First Day" motions in its Chapter 11 debt restructuring proceeding (see 1902250058). U.S. Bankruptcy Court for the Southern District of New York granted Windstream interim approval to gain access to up…
Sign up for a free preview to unlock the rest of this article
Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.
to $400 million of $1 billion in debtor-in-possession financing, which combined with cash flow is available to meet operational needs and continue operating as usual, the company said Tuesday. Windstream is focused on providing all customers with "critical voice and data services ... without interruption," said Thomas Whitehead, vice president-federal government, in a Wednesday statement. "We will continue to conduct business as usual, honor existing customer programs and roll out installations and investments as planned." He said Windstream has been "in compliance with all Connect America Fund milestones and requirements and will continue to be throughout this process." Uniti Group continues "to closely monitor Windstream’s situation, and believes it will successfully navigate through the reorganization process," said CEO Kenny Gunderman. "We were pleased to see Windstream state its intent to continue operations in the ordinary course and pay in full its service providers." Windstream's spinoff of Uniti and leaseback arrangements are the focus of a legal dispute with Aurelius Capital Management, which resulted in a court reversal for Windstream that prompted its Chapter 11 bankruptcy filing. Uniti says Windstream is its largest customer and tenant.