UPDATE Frontier Communications said its reorganization plan has been confirmed by the U.S. Bankruptcy Court for the Southern District of New York. The company filed for Chapter 11 bankruptcy in April, due to a debt load of more than $17 billion. Frontier expects to complete its restructuring and successfully emerge from Chapter 11 following the completion of the regulatory approval process, reported Telecompaper.
Once it emerges from bankruptcy, Frontier expects its debt to be reduced by more than $10 billion. The company said 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 favorable determinations in six states and is progressing with the remaining regulatory approvals. When this process is complete, the telecom 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 reorganization plan protects the benefits and collective bargaining agreements of frontline employees.
However, the CWA said 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 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, according to the account.