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

Bankrupt

Windstream Stuns Industry, Channel, Files Bankruptcy in ‘Offensive Move’

  • Written by Edward Gately
  • February 25, 2019
The business communications giant hopes to emerge a stronger company.

After losing its court battle against Aurelius Capital Management, Windstream has filed for chapter 11 bankruptcy protection.

On Feb. 15, the U.S. District Court of the Southern District of New York ruled in favor of Aurelius, a Windstream bondholder, saying the communication giant’s 2015 spinoff of copper and fiber assets into the Uniti Group real estate investment trust (REIT) breached their contract.

The court ruled that Aurelius is entitled to a money judgment of nearly $310.5 million, plus interest after July 23, 2018.

Windstream has about $5.8 billion in outstanding bonds and loans.

Looking for more? We got hot takes on Windstream’s bankruptcy from master agents Telarus and Sandler Partners. Sandler told us commission cuts will be a potential concern.
Ovum's Mike Sapien

Ovum’s Mike Sapien

Mike Sapien, Ovum’s vice president and chief analyst of enterprise services, said when deciding to file for bankruptcy, it’s “best to move first before the creditors force it upon you.”

“So Windstream [made] an offensive move to avoid potential reactive moves forced by creditors/bondholders,” he said. “Windstream did not have much choice given their current situation and having other bondholders.”

Windstream “clearly miscalculated” the risks of its earlier move to split the company and create its REIT a few years ago, Sapien said. Fortunately most telcos avoided this move and kept their telecom assets within their company, he said.

David Avery, Windstream’s vice president of corporate affairs, tells Channel Partners his company has sufficient liquidity to run its business throughout the court-supervised process. Windstream also has received a commitment for $1 billion in new financing from Citigroup Global Markets, he said.

Windstream's David Avery

Windstream’s David Avery

“Following court approval, which we expect in the next couple of days, this financing, combined with cash generated by the company’s ongoing operations, will be available to ensure we continue operating as usual,” he said. “Our partnership with channel partners is very important to us and we are committed to ensuring all customers realize the maximum benefit in transitioning to next-generation technology solutions and premium broadband services. While we may not have all of the answers today, we are committed to keeping our channel partners informed throughout this process as there are updates to share.”

Windstream said it plans to use the court-supervised process to address “debt maturities that have been accelerated as a result of the recent decision by Judge Jesse Furman.”

“Following a comprehensive review of our options, including an appeal, the board of directors and management team determined that filing for voluntary chapter 11 protection is a necessary step to address the financial impact of Judge Furman’s decision and the impact it would have on consumers and businesses across the states in which we operate,” said Tony Thomas, Windstream’s president and CEO. “Taking this proactive step will ensure that Windstream has access to the capital and resources we need to continue building on Windstream’s strong operational momentum while we engage in constructive discussions with our creditors regarding the terms of a consensual plan of reorganization.”

Windstream’s leadership “acted decisively to secure the long-term financial stability of the company, and “we are confident that, upon completion of the reorganization process, we will be even better positioned to invest in our business, expand our speed and capabilities for our customers and compete for the long term,” Thomas said.

In conjunction with the filing, Windstream said it has filed a number of customary first day motions. These motions will allow it to continue to operate in the normal course of business without interruption or disruption to its relationships with its customers, vendors, channel partners and employees. The company expects to receive court approval for these requests and intends to …

  • Page 1
  • Page 2
Tags: Agents Regulation & Compliance Telephony/UC/Collaboration

Most Recent


  • Cloud Roundup
    Google Cloud Lashes Out at Microsoft, New Hurdle for Broadcom-VMware
    This cloud computing wrap-up showcases some big news and happenings at more under-the-radar cloud firms.
  • Joseph Chong Enterprise Connect
    ‘Collaborate Happy’: Zoom, Google Cloud, AWS Showcase New AI, Machine Learning Tools
    “Things that are not possible are possible,” said Google Cloud at Enterprise Connect.
  • 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.

3 comments

  1. Avatar David K. February 27, 2019 @ 12:33 am
    Reply

    This was bound to happen following a series of management misteps including the purchase and sale of data centers, purchase and sale of Earthlink, and the bizare fiber asset REIT spinoff and leaseback scheme. Would be nice to see a stable company like TDS or Consolidated Communications acquire Windstream following the bankrupty to expand their footprint, turn things around, and provide customers some much needed stability.

  2. Avatar Anonymous March 4, 2019 @ 4:02 pm
    Reply

    Make no mistake, Windstream management will evaluate partner contracts to determine those they will no longer want to honor through the BK process. Those that are collecting fees but not actively selling will be top of the list.

  3. Avatar emily s johnson March 11, 2019 @ 10:58 am
    Reply

    So what happens to my shares of Windstream stock…do I consider them a total loss…or will I ever recover any money invested …

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

Google Cloud Lashes Out at Microsoft, New Hurdle for Broadcom-VMware

March 30, 2023

National Women’s History Month: Channel Women on Getting Good Advice

March 30, 2023

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

March 29, 2023

Industry Perspectives

View all

AI Spells the End of End User Security

March 30, 2023

Why You Should Include Audiovisual Solutions in Your UC Services

March 28, 2023

Selling Your MSP: Strategic vs. Financial Buyers

March 22, 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

.@HP thanks partners, promises to reduce wait times and complexity across organization. #HPAmplify… twitter.com/i/web/status/1…

March 30, 2023
ChannelFutures

.@Kyndryl #layoffs impacting a percentage of workforce. dlvr.it/SllFbF https://t.co/Bo77KdJMpx

March 30, 2023
ChannelFutures

[email protected] makes #DE&I a priority year-round, not just for @womenshistmonth. “A constant cadence of activism… twitter.com/i/web/status/1…

March 30, 2023
ChannelFutures

📺 Tune into the latest CFTV episode, brought to you by @HitachiVantara, all about how you can identify your competi… twitter.com/i/web/status/1…

March 30, 2023
ChannelFutures

“Things that are not possible are possible,” said @Google's @behshad_behzadi at #EnterpriseConnect about generative… twitter.com/i/web/status/1…

March 30, 2023
ChannelFutures

📺 We asked 2023 #ChannelInfluencer @peter_kujawa from Service Leadership what his secret sauce is- his work philoso… twitter.com/i/web/status/1…

March 30, 2023
ChannelFutures

.@okta rolling out redesigned partner program. #cybersecurity dlvr.it/SlkYJl https://t.co/52Wx5prcNS

March 30, 2023
ChannelFutures

Need some advice? Women in the communications and IT channel share some of the best they’ve ever received about wor… twitter.com/i/web/status/1…

March 30, 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