Windstream Holdings has announced that it has completed its restructuring through Chapter 11. The process enabled the company to shrink its debt load by more than $4 billion (roughly by two-thirds) and given it access to approximately $2 billion in new capital. It also transformed from a publicly held to a privately held company.
“Today marks the start of a new era for Windstream as an even stronger, more competitive company,” said Tony Thomas, president and CEO of Windstream. “With the completion of our financial restructuring, we now have an enhanced balance sheet and a robust capital investment program to expand 1-gig internet service in rural America and maintain our product and software leadership in SD-WAN and UCaaS for enterprise customers. We are also pleased to continue our strategic partnership with Uniti Group and expand our mutually beneficial relationship. With the support of our new owners and current operational momentum, Windstream will continue advancing our long-term growth objectives while providing our customers with quality and reliable services.”
Windstream Holding filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York in February 2019 (see “Windstream Holdings files for Chapter 11 bankruptcy, pledges to continue operations”). The filing came after it lost a suit brought by Aurelius Capital Management and U.S. Bank National Association that Windstream Services, LLC’s 2015 spinoff of certain telecommunications network assets into a real estate investment trust (REIT) violated its agreements with bondholders (see "Windstream plans REIT to own fiber and copper networks"). The ruling set in motion a series of events of default and/or cross-defaults with several Windstream debt obligations and credit agreements.
The New York court approved Windstream’s subsequent restructuring plan this past June (see “Bankruptcy court confirms Windstream’s restructuring plan”). In the time between the Chapter 11 filing and this past June, Windstream reached a Plan Support Agreement with its first lien creditors (see “Windstream reaches financial restructuring agreement with creditors”) and an agreement with Uniti Group that halted litigation between the two firms and will see Uniti purchase some Windstream assets.
Windstream emerges from Chapter 11 with a new logo as well as a new board. “Tony and the Windstream team have made significant strides in the last 18 months to better position the company to compete for the long term. The new Board and I are confident that we have the right management team and right strategy to accelerate Windstream’s transformation, return to growth and drive sustainable value creation,” commented Paul Sunu, chairman of the new board of directors.
However, Windstream will continue to provide services under existing brands Windstream Enterprise, Kinetic by Windstream (consumer broadband and small and medium business services), and Windstream Wholesale.
For related articles, visit the Business Topic Center.
For more information on high-speed transmission systems and suppliers, visit the Lightwave Buyer’s Guide.
To stay abreast of fiber network deployments, subscribe to Lightwave’s Service Providers and Datacom/Data Center newsletters.
Stephen Hardy | Editorial Director and Associate Publisher, Lightwave
Stephen Hardy is editorial director and associate publisher of Lightwave and Broadband Technology Report, part of the Lighting & Technology Group at Endeavor Business Media. Stephen is responsible for establishing and executing editorial strategy across the both brands’ websites, email newsletters, events, and other information products. He has covered the fiber-optics space for more than 20 years, and communications and technology for more than 35 years. During his tenure, Lightwave has received awards from Folio: and the American Society of Business Press Editors (ASBPE) for editorial excellence. Prior to joining Lightwave in 1997, Stephen worked for Telecommunications magazine and the Journal of Electronic Defense.
Stephen has moderated panels at numerous events, including the Optica Executive Forum, ECOC, and SCTE Cable-Tec Expo. He also is program director for the Lightwave Innovation Reviews and the Diamond Technology Reviews.
He has written numerous articles in all aspects of optical communications and fiber-optic networks, including fiber to the home (FTTH), PON, optical components, DWDM, fiber cables, packet optical transport, optical transceivers, lasers, fiber optic testing, and more.
You can connect with Stephen on LinkedIn as well as Twitter.