US operator Windstream said the bankruptcy court for the Southern District of New York has confirmed its reorganisation plans. The company now expects to emerge from Chapter 11 bankruptcy protection in late August, as a privately held company.
Upon emergence, Windstream said it will reduce its debt by more than two-thirds (USD 4 billion) and have access to around USD 2 billion in new capital. The financial moves will allow the company better allocate its money and focus on growing the business and better positioning the company in the long term.
The company filed its amended reorganisation plan in the spring, after filing for bankruptcy in February 2019 on the back of debt defaults. That default was triggered by a court ruling against the group, which that the spin-off of the company's assets into a real estate trust violated the terms of its debt with bondholders.
