Frontier Communications Corporation (NASDAQ: FTR) has announced that, together with its subsidiaries, it has entered into a Restructuring Support Agreement (“RSA”) with bondholders representing more than 75% of Frontier´s approximately USD 11 billion in outstanding unsecured bonds (the “Bondholders”), the company said.
The RSA contemplates agreed-upon terms for a pre-arranged financial restructuring plan (the “Plan”) that leaves unimpaired all general unsecured creditors and holders of secured and subsidiary debt. Under the RSA, the Bondholders have, subject to certain terms and conditions, agreed to support implementation of a Plan that is expected to reduce the company´s debt by more than USD 10 billion and provide significant financial flexibility to support continued investment in its long-term growth.
To implement the Plan, the company and its direct and indirect subsidiaries voluntarily filed petitions under Chapter 11 of the United States Bankruptcy Code in the Southern District of New York.
Frontier expects to continue providing quality service to its customers without interruption and work with its business partners as usual throughout the court-supervised process. The company has sufficient liquidity to meet its ongoing obligations. Under the RSA, trade vendors will be unimpaired for both pre- and post-petition obligations.
Kirkland & Ellis LLP is serving as legal advisor, Evercore is serving as financial advisor and FTI Consulting, Inc. is serving as restructuring advisor to the company.
Frontier Communications Corporation (NASDAQ: FTR) offers a variety of services to residential and business customers over its fiber-optic and copper networks in 29 states, including video, high-speed Internet, advanced voice, and Frontier Secure® digital protection solutions.