https://www.channelfutures.com/wp-content/themes/channelfutures_child/assets/images/logo/footer-new-logo.png
  • Home
  • Technologies
    • Back
    • SDN/SD-WAN
    • Cloud
    • RMM/PSA
    • Security
    • Telephony/UC/Collaboration
    • Cable
    • Mobility & Wireless
    • Fiber/Ethernet
    • Data Centers
    • Backup & Disaster Recovery
    • IoT
    • Desktop
    • Artificial Intelligence
    • Analytics
  • Strategy
    • Back
    • Mergers and Acquisitions
    • Channel Research
    • Business Models
    • Distribution
    • Technology Solutions Brokerages
    • Sales & Marketing
    • Best Practices
    • Vertical Markets
    • Regulation & Compliance
  • MSP 501
    • Back
    • 2023 MSP 501 Application
    • 2022 MSP 501 Rankings
    • 2022 NextGen 101 Rankings
  • Intelligence
    • Back
    • Galleries
    • Podcasts
    • From the Industry
    • Reports/Digital Issues
    • Webinars
    • White Papers
  • Channel Futures TV
  • EMEA
  • Channel Chatter
    • Back
    • People on the Move
    • New/Changing Channel Programs
    • New Products & Services
    • Industry Honors
  • Resources
    • Back
    • Advisory Boards
    • Industry Organizations
    • Our Sponsors
    • Advertise
    • 2023 Editorial Calendar
  • Awards
    • Back
    • 2022 MSP 501
    • Channel Influencers
    • Circle of Excellence
    • DE&I 101
    • Technology Advisor 101 (TA 101)
    • Channel Leaders Lists
  • Events
    • Back
    • 2023 Call for Speakers
    • CP Conference & Expo
    • MSP Summit
    • Channel Partners Europe
    • Channel Partners Event Coverage
    • Webinars
    • Industry Events
  • About Us
  • DE&I
Channel Futures
  • NEWSLETTER
  • Home
  • Technologies
    • Back
    • SDN/SD-WAN
    • Cloud
    • RMM/PSA
    • Security
    • Telephony/UC/Collaboration
    • Cable
    • Mobility & Wireless
    • Fiber/Ethernet
    • Data Centers
    • Backup & Disaster Recovery
    • IoT
    • Desktop
    • Artificial Intelligence
    • Analytics
  • Strategy
    • Back
    • Mergers and Acquisitions
    • Channel Research
    • Business Models
    • Distribution
    • Technology Solutions Brokerages
    • Sales & Marketing
    • Best Practices
    • Vertical Markets
    • Regulation & Compliance
  • MSP 501
    • Back
    • 2023 MSP 501 Application
    • 2022 MSP 501 Rankings
    • 2022 NextGen 101 Rankings
  • Intelligence
    • Back
    • Galleries
    • Podcasts
    • From the Industry
    • Reports/Digital Issues
    • Webinars
    • White Papers
  • Channel Futures TV
  • EMEA
  • Channel Chatter
    • Back
    • People on the Move
    • New/Changing Channel Programs
    • New Products & Services
    • Industry Honors
  • Resources
    • Back
    • Advisory Boards
    • Industry Organizations
    • Our Sponsors
    • Advertise
    • 2023 Editorial Calendar
  • Awards
    • Back
    • 2022 MSP 501
    • Channel Influencers
    • Circle of Excellence
    • DE&I 101
    • Technology Advisor 101 (TA 101)
    • Channel Leaders Lists
  • Events
    • Back
    • 2023 Call for Speakers
    • CP Conference & Expo
    • MSP Summit
    • Channel Partners Europe
    • Channel Partners Event Coverage
    • Webinars
    • Industry Events
  • About Us
  • DE&I
    • Newsletter
  • REGISTER
  • MSPs
  • VARs / SIs
  • Agents
  • Cloud Service Providers
  • Channel Partners Events
 Channel Futures

Telephony/UC/Collaboration


Shutterstock

North America growth

Frontier Communications Files Chapter 11 Bankruptcy

  • Written by Edward Gately
  • April 15, 2020
Frontier will work with its business partners as usual throughout the court-supervised process.

Frontier Communications, the provider of telecom services in 29 states, has filed Chapter 11 bankruptcy as part of its restructuring support agreement to cut its debt by more than $10 billion.

The agreement is supported by 75% of Frontier’s bondholders. The company also received $460 million in debtor-in-possession (DIP) financing.

Frontier said the agreement provides financial flexibility to support continued investment in its long-term growth.

Last month, the company said it would defer making interest payments as it continued discussions with creditors regarding its $17.5 billion debt load.

Frontier is the latest company in the channel to file Chapter 11 bankruptcy, following Windstream, Fusion Connect and Sungard AS.

Han, Bernard_Frontier

Frontier’s Bernie Han

“With this agreement with our bondholders, we can now focus on executing our strategy to drive operational efficiencies and position our business for long-term growth,” said Bernie Han, Frontier’s president and CEO. “At the same time, the COVID-19 pandemic continues to impact the entire business community, and our team is focused on ensuring the health and safety of our employees and customers. The services we provide to our customers keeps them connected, safe and informed, and I would like to thank our team for their continued dedication, especially in light of the current environment.”

Frontier will continue providing service to its customers without interruption. It also will work with its business partners as usual throughout the court-supervised process.

Following court approval, Frontier’s liquidity will total over $1.1 billion. This liquidity, combined with cash flow from ongoing operations, should meet Frontier’s operational and restructuring needs.

“With a recapitalized balance sheet, we will have the financial flexibility to reposition the company and accelerate its transformation by allocating capital resources and adding talent to enhance our service offerings to our customers while optimizing value for our stakeholders,” said Robert Schriesheim, who chairs the finance committee of Frontier’s board of directors. “Under the [agreement], our trade vendors will be paid for goods and services provided both before and after the filing date.”

Omdia's Brian Washburn

Omdia’s Brian Washburn

Brian Washburn, an analyst with Omdia, said Frontier’s operations no doubt will continue while in bankruptcy. Earlier this month, he said the COVID-19 pandemic could complicate the process.

“Interruption in service is unthinkable for a lifeline telecommunications provider,” he said. “Frontier’s operating figures sans debt are sound, so of course the company’s operations will — and must – proceed.”

Telecoms have a lot of premium value-adds, Washburn said. But at its most basic, it remains an essential utility that keeps people and businesses connected, he said.

“Frontier’s core business model is solid, so securing a financial DIP lifeline through bankruptcy should never have been in question,” he said. “But these are unique times. Likewise, any asset sale that had already been under agreement to sell prior to Chapter 11 ought to carry through, it now just needs to get court approval. I see no surprises here and wouldn’t expect any change in course.”

Frontier is proceeding with the $1.35 billion sale of its operations and assets in Washington, Oregon, Idaho and Montana. WaveDivision Capital in partnership with Searchlight Capital Partners is acquiring the assets. The deal is expected to close next month.

Once completed, Frontier will operate in 25 states.

The Communications Workers of America (CWA) issued the following statement regarding the bankruptcy filing:

“Frontier’s front-line employees have a unique insight into the challenges — and opportunities — that the company faces. Unfortunately, Frontier’s management did not engage with CWA members or leadership as part of their negotiations with creditors, denying their workforce a much-needed voice in the future of the company. CWA members expect to have input in the direction of the company as the bankruptcy process goes forward. We call on Frontier and its creditors to work quickly to put Frontier on a strong financial footing and prioritize the long-term gains that will come from investment in Frontier’s network over extracting cash from the company for short-term profit.”

Tags: Agents Business Models Fiber/Ethernet Mobility & Wireless Regulation & Compliance Telephony/UC/Collaboration

Most Recent


  • HP's Enrique Lores Amplify 2023
    Amplify 2023: HP Tackling Tough Market with ‘Realistic Optimism’
    HP CEO Enrique Lores has outlined a seven-point plan to navigate current market challenges.
  • Microsoft's Nicole Herskowitz
    ‘The Next Normal is Here’: Microsoft, Cisco, RingCentral Make the Case for Generative AI in Collaboration
    “Every decade or so a new technology emerges that is truly disruptive,” said RingCentral's president and COO.
  • Seattle
    Microsoft Job Cuts Hit Hundreds More Workers in Seattle Area
    In January, Microsoft initiated a plan to shed about 10,000 workers.
  • boxing gloves
    Channel Conflict, Controversy: Avaya Bankruptcy, Mass Layoffs, High-Profile Execs Depart
    There's always something to buzz about in the channel.

Leave a comment Cancel reply

-or-

Log in with your Channel Futures account

Alternatively, post a comment by completing the form below:

Your email address will not be published. Required fields are marked *

Related Content

  • Welcome Mat
    Ex-Telarus Exec Scott Forbush Leaves Upstack for PPT Solutions After 5 Months
  • Woman with questions
    Should We Just Call Master Agents Distributors?
  • Benefit, Plus Sign
    TBI, Avant Add New Cloud, Security Suppliers to Lineups
  • CIO
    ScanSource Hires New CIO to Lead Global IT Strategy

Upcoming Events

View all

Channel Partners Conference & Expo

May 1, 2023 - May 4, 2023

Channel Partners Europe

June 13, 2023 - June 14, 2023

Channel Futures Leadership Summit

October 30, 2023 - November 2, 2023

Galleries

View all

Amplify 2023: HP Tackling Tough Market with ‘Realistic Optimism’

March 29, 2023

Meet Channel Futures’ 2023 Channel Influencers, EMEA

March 29, 2023

ServiceNow Looks Beyond IT Service Management with Now Platform Utah Release

March 29, 2023

Industry Perspectives

View all

Why You Should Include Audiovisual Solutions in Your UC Services

March 28, 2023

Selling Your MSP: Strategic vs. Financial Buyers

March 22, 2023

10 Strategic Smart Enterprise Drivers for 2023

March 16, 2023

Webinars

View all

Give Customers the Power: How MSPs Can Leverage Cloud Choice

April 4, 2023

DE&I Dialogue: How the Right DE&I Initiatives Can Propel Your Business

April 5, 2023

Meet the 2023 Channel Futures Channel Influencers

April 13, 2023

White Papers

View all

6 UCaaS Reseller Challenges and How Real World Businesses Solved Them

February 1, 2023

Frost Radar: North American UCaaS Market, 2022

February 1, 2023

The Complete Guide to White-Label UCaaS for Reseller Success

February 1, 2023

Channel Futures TV

View all

Kaseya, Post-Acquisition, Expanding ‘Well-Regarded’ Datto Partner Program

Aryaka ‘Driving Value to the Channel Community’ with Throttle

March 24, 2023

Coffee with Craig and James Episode 121: Hewlett Packard Enterprise

March 23, 2023

Real-Life M&A: Advice for a Successful Channel Deal

March 13, 2023

Twitter

ChannelFutures

.@Cisco is acquiring @LightspinTech to beef up #cloudsecurity dlvr.it/SlhYYk https://t.co/59LXG92Csl

March 29, 2023
ChannelFutures

.@BridgePointeTec and @Onesourcecom offered some interesting insights into the M&A process. dlvr.it/SlhXzy https://t.co/N11TGjaJwt

March 29, 2023
ChannelFutures

.@ConnectWise partners with @CISAgov JCDC for better security for #MSPs. dlvr.it/SlhVNQ https://t.co/9rqHvhT9Dj

March 29, 2023
ChannelFutures

.@HP CEO @EnriqueJLores reveals plan to tackle tough market conditions; “It’s important not to lose perspective”… twitter.com/i/web/status/1…

March 29, 2023
ChannelFutures

.@ServiceNow expands further beyond #ITSM with #NowPlatformUtah release. dlvr.it/SlhDq5 https://t.co/JscqV7cmUm

March 29, 2023
ChannelFutures

#CPExpo preview: @KaseyaCorp offering plenty of enablement services to partners. dlvr.it/Slh99x https://t.co/35cFctNynW

March 29, 2023
ChannelFutures

In the changing world of networking and telecommunications services, Channel Futures is recognizing these 20 leader… twitter.com/i/web/status/1…

March 29, 2023
ChannelFutures

Ever think about what you know now that you wish you’d known earlier? Here’s what women in the communications and I… twitter.com/i/web/status/1…

March 29, 2023

MSP 501

The industry's largest and most comprehensive partner awards program.

Newsletters and Updates

Sign up for The Channel Report, Channel Futures Update, MSP 501 Newsletter and more.

Live Channel Events

Get the latest information on the next industry-leading Channel Partners event.

Galleries

Educational slide shows and images from live events.

Media Kit And Advertising

Want to reach our audience? Access our media kit.

DISCOVER MORE FROM INFORMA TECH

  • Channel Partners Events
  • Telecoms.com
  • MSP 501
  • Black Hat
  • IoT World Today
  • Omdia

WORKING WITH US

  • Contact
  • About Us
  • Advertise
  • Newsletter

FOLLOW Channel Futures ON SOCIAL

  • Privacy
  • CCPA: “Do Not Sell My Data”
  • Cookie Policy
  • Terms
Copyright © 2023 Informa PLC. Informa PLC is registered in England and Wales with company number 8860726 whose registered and Head office is 5 Howick Place, London, SW1P 1WG.
This website uses cookies, including third party ones, to allow for analysis of how people use our website in order to improve your experience and our services. By continuing to use our website, you agree to the use of such cookies. Click here for more information on our Cookie Policy and Privacy Policy.
X