Frontier Communications drops into Chapter 11 bankruptcy

[Yo_Mama_Been_Loggin]

Frontier Communications filed for bankruptcy Tuesday night to kick-start a prearranged $10 billion debt-cutting proposal backed by its bondholders.

Frontier announced it has entered into a Restructuring Support Agreement (RSA) with bondholders representing more than 75% of its $11 billion outstanding unsecured bonds. Frontier's goal is to reduce its debt by more than $10 billion.

Under the terms of the RSA, Frontier said its trade vendors would be paid for goods and services provided both before and after the Tuesday's filing date. Frontier filed in the U.S. Bankruptcy Court for the Southern District of New York.

“We are undertaking a proactive and strategic process with the support of our bondholders to reduce our debt by over $10 billion on an expedited basis. We are pleased that constructive engagement with our bondholders over many months has resulted in a comprehensive recapitalization and restructuring. We do not expect to experience any interruption in providing services to our customers,” said Frontier's Robert Schriesheim, chairman of the finance committee of the board of directors, in a statement. “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."

https://www.fiercetelecom.com/telecom/frontier-communications-drops-into-chapter-11-bankruptcy?mkt_tok=eyJpIjoiTURWaFlUVTBOekEwT1dRMCIsInQiOiIrdFwvTWFNTm5TNXJFY1RJTW4raTQ0NVBtdUVPa0JVWmppTjVoNFN2QjZVdk1iaURGbEZwSFA1M0NOWWJjUVU3V1FFNlFZbDA2Z3gycDZMeGR3aUJyRTVrRnVJUGNQNG0yZm1KSmZYcXZPME9Ddktuc3JTZkY3ZGZ4K29VbFZHejIifQ%3D%3D&mrkid=8465628

[dixiegrrrrl]

1. That's what Cal. PG&E did after the forest fires

It's a legal way for a company to escape really having to pay debt.

Same thing trump did in all his bankruptcies. The interesting trick for him was that he kept rolling over the debt, essentially like the Gov't does, until it accumulated too much, then he'd file for bankruptcy.