Frontier Filing for Bankruptcy
Frontier Communications is the latest telco to file for bankruptcy. Bondholders representing more than 75% of the carrier's approximately $11 billion in unsecured bonds agreed to support the plan that's expected to reduce the company’s debt by more than $10 billion, said an email we received at around 11 p.m. EDT Tuesday. The company said it and subsidiaries filed for Chapter 11 protection in U.S. District Court for the Southern District of New York.
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"Frontier expects to continue providing quality service to its customers without interruption and work with its business partners as usual throughout the court-supervised process," said its news release: It "has sufficient liquidity to meet its ongoing obligations."
The company plans to continue the sale of its Idaho, Montana, Oregon and Washington operations to Northwest Fiber for $1.35 billion cash. Closing may occur April 30 and the seller said it will seek court approval "to complete the transaction on an expedited basis."
Last year, Windstream filed for bankruptcy. Frontier's filing wasn't immediately available.