Frontier Communications, which filed for bankruptcy on 14 April, said its plan of reorganisation has been confirmed by the US Bankruptcy Court for the Southern District of New York, subject to final documentation. Frontier expects to complete its restructuring and successfully emerge from Chapter 11 following the completion of the regulatory approval process. No specific date for that emergence has yet been given.
Upon emergence, its debt will have been reduced by over USD 10 billion. The company added that it will also have significant financial flexibility to support continued investment for long-term growth.
Since the start of its in-court restructuring, Frontier has secured regulatory approvals or favourable determinations in six states and is progressing with the remaining regulatory approvals. When this process is complete, the company expects to promptly consummate the transactions under its plan and emerge from its in-court restructuring process.
The Communications Workers of America union expressed a degree of satisfaction about the reduced debt, saying this will allow Frontier to make the investments needed to provide its services. The union also noted that the reorganisation plan protects the benefits and collective bargaining agreements of frontline employees.The union added however that some questions remain about Frontier’s plans to follow through on badly-needed investments on broadband deployment and service quality. The CWA is therefore calling on state regulatory agencies and the Federal Communications Commission (FCC) to “thoroughly” review Frontier’s plan in order to ensure that the interests of Frontier workers and customers will be served in the newly reorganized company.
Updates
24 AUG 2020
- adds comment from union CWA
