Frontier Communications Corporation tells it group of creditors through that it is looking for a March bankruptcy. Frontier serves as the provider of telecom services in 29 states which includes Texas.
As of September 30, 2019, Frontier carries a debt load of $16.3 billion
Meeting with creditors and advisers on Thursday, the company executives including the new Chief Executive Officer, Bernie Han, told them the company is finding ways to negotiate a pre-packaged agreement before $356 million of debt payments come due March 15. Sources pleaded anonymity.
Bernie Han replaced long-time Frontier Chief Executive Officer and President Daniel McCarthy.
“Certain Frontier creditors signed confidentiality documents that restrict their ability to trade in preparation for the negotiation.” Bloomberg reported.
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A representative of Frontier declined to comment. Creditors have urged Frontier for a restructuring plan.
Such engagement would basically invoke Chapter 11 bankruptcy, which would enable Frontier to keep operating without interruption of telephone and broadband service to its customers.
A group of creditors, including Elliott Management Corp. and Franklin Resources Inc. owned nearly 50% of the company’s bonds and organised with law firm, Akin Gump Strauss Hauer & Feld LLP and investment bank Ducera Partners LLC previously reported by Bloomberg.
A separate group of creditors, including GoldenTree Asset Management Lp, organised with Houlihan Lokey Inc. and Milbank LLP. Frontier receives advice from Kirkland & Ellis LLP and Evercore Inc.