Windstream can resume normal business operations as it proceeds through Chapter 11 bankruptcy proceedings. The U.S. Bankruptcy Court for the Southern District of New York granted the carrier’s “First Day” motions related to its voluntary bankruptcy petitions filed February 25.
The company said it’s “notable,” the court granted the carrier interim approval to access up to $400 million of its $1 billion in debtor-in-possession [DIP] financing.
Windstream said the DIP financing, combined with access to the cash generated by the company’s ongoing operations, will enable the company to continue operating its business as usual.
The carrier filed for Chapter 11 bankruptcy after losing a lawsuit brought by its bondholder Aurelius that obligated the carrier to pay $310 million plus interest. Rather than appeal, Windstream chose to file for Chapter 11 bankruptcy, Inside Towers reported.
Windstream President/CEO Tony Thomas, said the court approval of the First Day motions will enable the company to continue to pay employees, maintain relationships with vendors and business partners and serve customers. “Our focus going forward is on serving our customers and maintaining the strong operational momentum we are seeing across our business,” said Thomas. The company created a webpage describing its restructuring.
In response to the company’s actions, FCC Commissioner Geoffrey Starks called it “concerning” when one of the country’s largest internet and voice services company files for bankruptcy. “Windstream provides critical 911 service and I will be monitoring the situation closely to ensure that there are no disruptions,” said the agency’s newest Commissioner. He also said he’d watch to ensure the carrier “makes proper use of the millions of dollars in Universal Service funding it receives and that it meets all broadband connectivity and other commitments related to that funding.” Comments? Email Us.
February 28, 2019