October 16, 2020
Frontier Communications‘ Chapter 11 bankruptcy exit could be coming in early 2021 and 10 states have now approved its restructuring plan.
The New York Public Service Commission is the latest to sign off on its plan. Arizona, Georgia, Illinois, Minnesota, Nebraska, Nevada, New York, South Carolina, Utah and Virginia also have given the OK.
Frontier Communications‘ Chapter 11 bankruptcy was filed in April as part of its restructuring support agreement to cut its debt by more than $10 billion. It filed in the U.S. Bankruptcy Court for the Southern District of New York.
Upon emergence, Frontier will have reduced its debt by that amount. Furthermore, it will move forward with enhanced financial flexibility to support continued investment in customer experience and long-term growth.
Frontier’s Mark Nielsen
“I am pleased with our continued progress in receiving state approvals and appreciate the constructive engagement we have had with regulators across our service territories, including our most recent approval in New York,” said Mark Nielsen, Frontier’s executive vice president and chief legal officer. “We now await approval in just a few states, including our home state of Connecticut. Through this restructuring process, we are building a stronger financial foundation to provide a better experience for all our customers.”
Bankruptcy Court Approved Restructuring Plan
The court confirmed a fourth amended restructuring plan in August.
“Frontier serves a critical function in providing essential telecommunications services to its customers across the U.S.,” said Jonathan Spalter, president and CEO of USTelecom. “We are pleased to see swift and substantial support for Frontier’s restructuring, which, upon completion, will enable it to further invest in its services to better meet customers’ needs.”
In August, the Communications Workers of America (CWA) and The Utility Reform Network (TURN) filed comments with the Federal Communications Commission (FCC) regarding the bankruptcy. It raises concerns about whether the company’s proposed reorganization plan is in the public interest.
It also questions whether the reorganized Frontier will invest in improved customer service. That includes service quality commitments, and broadband deployment under state and federal programs.
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