Frontier Communications has announced that the U.S. Bankruptcy Court for the Southern District of New York has confirmed its plan of reorganization, subject to final documentation.
Upon emergence, the Norwalk company said, it will have reduced its total outstanding indebtedness by more than $10 billion and have achieved significant financial flexibility to support continued investment in its long-term growth.
Frontier filed for Chapter 11 in April, when it listed total debt of $21.9 billion against assets of $17.4 billion.
The company said it expects to complete its restructuring and successfully emerge from Chapter 11, following the completion of the regulatory approval process.
“We are pleased to have reached this next critical milestone in our expedited restructuring process, which will position Frontier for long-term growth and success,” said Robert Schriesheim, chairman of the finance committee of the board of directors.
“On behalf of the entire Frontier team, I want to express our gratitude to all of our stakeholders, including lenders, bondholders, regulators, vendors, and of course our valued customers and employees for their continued business and support,” he continued. “It is thanks to all of these stakeholders that we have been able to confirm our plan approximately four months after we initially filed for Chapter 11. We are working expeditiously to implement the plan and look forward to emerging as a competitive and healthy company.”
“With a significantly stronger financial foundation, Frontier will be well positioned to accelerate our transformation, invest in infrastructure and drive efficiencies to better serve our customers,” Frontier President and CEO Bernie Han said.
Since commencing its in-court restructuring, Frontier has secured regulatory approvals or favorable determinations in six states and is progressing with the remaining regulatory approvals. Upon completion of this process, Frontier expects to promptly consummate the transactions contemplated under the plan and emerge from its in-court restructuring process.
