Telecom provider Windstream filed for reorganization under Chapter 11 Bankruptcy Code in federal court on Monday. A federal judge ruled almost two weeks ago that Windstream’s spinoff of copper and fiber assets violated bond requirements. The ruling leaves Windstream with a $310 million judgment, reported Arkansas Business.
The bankruptcy filing is being used as a way to address the financial impact of the ruling and gives the company a chance to come to agreements with creditors. The company said it received a commitment from Citigroup Global Markets Inc. for $1 billion in debtor-in-possession financing that would help it meet its operational needs, reported KTHV -TV, Little Rock.
Now, the company needs to restructure.
FCC Wireline Competition Bureau Chief Kris Monteith said: “The promise of the Communications Act and the Commission’s Universal Service Fund, is that all Americans deserve a reliable communications network. I am therefore pleased that Windstream has made clear that its reorganization in bankruptcy will not disrupt service to any consumers.”
She continued: “Nonetheless, we must be vigilant in light of these events to ensure that the lifesaving 911 service and the voice and broadband connections that Windstream’s customers rely upon remain—and that the federal funds that Windstream receives through the Connect America Fund and other universal service programs are put to their appropriate use to connect rural and low-income Americans with high-speed broadband.” Comments? Email Us.
February 26, 2019