Windstream Holdings Inc. has filed a restructuring plan in federal court that would allow the company to reduce its debt by $4 billion and emerge from bankruptcy in August.
The filing was submitted late Wednesday for approval by U.S. Bankruptcy Court Judge Robert Drain of New York. The plan must be approved by the judge, Windstream's creditors and state regulators. Windstream has been operating under bankruptcy protection since February 2019.
In March, Windstream announced that its leading creditors had signed off on the restructuring proposal, but formal approval is required in the court process.
"This plan charts the right course forward for Windstream and our stakeholders with the goal of emerging from restructuring by the end of August," Windstream Chief Executive Officer Tony Thomas said Thursday.
Drain has scheduled a hearing in June to consider Windstream's proposal.
Besides lowering its debt, Windstream's restructuring plan includes financing that will allow the company to exit bankruptcy, and also includes initiatives that lower its annual debt payments going forward.
"Our new capital structure will reduce our debt by more than $4 billion, giving Windstream the financial flexibility we need for long-term success," Thomas said. Additionally the settlement of our lawsuit with Uniti will fund a robust network investment plan to expand 1 gig fiber broadband service to more than half of our rural service area."
Windstream has about 4 million broadband customers.
Windstream has an April 21 hearing to gain approval for the settlement agreement it reached with Uniti Group Inc. over a $650 million annual leasing agreement. Windstream filed suit to alter the arrangement, calling it burdensome and too costly.
As part of the lawsuit settlement, Uniti agreed to invest up to $1.75 billion in network improvements for Windstream through 2030. Uniti also will pay Windstream about $490 million in cash and purchase fiber line assets from Windstream for another $285 million.
Windstream will continue to lease fiber assets from Uniti and pay essentially what it does today, about $650 million annually, according to the settlement with Uniti.
Business on 04/03/2020