Frontier Communications files for bankruptcy; The Civil Service Commission responds

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CHARLESTON, W.Va. – Frontier Communications has announced that it filed for bankruptcy (chapter 11).

As part of the filing, Frontier and its subsidiaries entered into a restructuring support agreement with bondholders representing more than 75% of Frontier’s approximately $ 11 billion in outstanding unsecured bonds, according to a statement from hurry.

Under the RSA, bondholders have, subject to certain conditions, agreed to support the implementation of a plan that is expected to reduce the company’s debt by more than $ 10 billion and provide financial flexibility. important to support continued investment in its long-term growth. , Frontier said.

Frontier said it has sufficient liquidity to meet its outstanding obligations. Under the RSA, professional sellers will not be depreciated for pre and post-petition obligations.

“We are embarking on a proactive and strategic process with the support of our bondholders to reduce our debt by more than $ 10 billion on an accelerated basis. We are delighted that a constructive engagement with our Bondholders over many months has resulted in a full recapitalization and restructuring. We do not anticipate any disruption in the provision of services to our clients, ”said Robert Schriesheim, Chairman of the Finance Committee of the Board of Directors. “With a recapitalized balance sheet, we will have the financial flexibility to reposition the Company and accelerate its transformation by allocating capital resources and adding talent to improve our service offerings to our clients while maximizing value for our stakeholders. Under the RSA, our commercial suppliers will be paid for goods and services provided before and after the filing date.

“With this agreement with our bondholders, we can now focus on executing our strategy to increase operational efficiency and position our business for long-term growth,” said Bernie Han, President and CEO. “At the same time, the COVID-19 pandemic continues to impact the entire business community, and our team is focused on the health and safety of our employees and customers. The services we provide to our customers keep them connected, secure and informed, and I want to thank our team for their continued dedication, especially in light of today’s environment. “

In conjunction with the proposed financial restructuring, Frontier said it received commitments for debtor-in-use financing (“DIP”) of $ 460 million. After court approval, Frontier’s cash will total more than $ 1.1 billion, including DIP funding and the company’s more than $ 700 million in cash. This liquidity, combined with the cash flows generated by Frontier’s ongoing operations, is expected to be available and sufficient to meet its operational and restructuring needs. The DIP financing agreement provides for the additional financing to convert into a revolving exit facility upon emergence, according to the press release.

The West Virginia Civil Service Commission issued a statement in response to Frontier’s Chapter 11 bankruptcy.

“Frontier informed the Commission of its Chapter 11 bankruptcy filing. The Company stated in a letter to the Commission that the Chapter 11 filing will not disrupt any service to residential, commercial or wholesale consumers; will not impact Frontier’s ability to provide voice or data service in the State; and will not affect the provision of 911 services by Frontier throughout its service territory. The company further stated that the Chapter 11 filing would not result in any change in the rates or terms of service provided to customers or offered to potential customers in the ordinary course of business. Frontier told the Commission that it was not going to close its doors, but that it was in fact taking these steps to position the company for long-term success. He further stressed that the eventual reorganization of Frontier through the bankruptcy process should ultimately improve the financial and operational situation of the company and allow Frontier to improve its services to its customers.

West Virginia Public Service Commission Statement

PSC President Charlotte Lane said: “All Frontier customers should be aware that filing for bankruptcy will not affect their service. The Council will be monitoring this proceeding closely to ensure that West Virginia does not see any disruption in service. “

The border established a dedicated web page provide additional information regarding the restructuring and the Chapter 11 process.



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