Chapter 11 plan to cut Windstream’s debt by $4 billion

The U.S. Bankruptcy Court for the Southern District of New York has confirmed Windstream’s Plan of Reorganization.  Windstream expects to emerge from Chapter 11 in late August as a private company, having reduced its debt by more than $4 billion or approximately two-thirds. The new company will have access to approximately $2 billion in new capital to expand 1 Gig Internet service in rural America and maintain its product and software leadership in SD-WAN and UCaaS for enterprise customers.

“We were able to reach this important milestone thanks to the support of our financial stakeholders, as well as our customers, vendors and business partners. The Court’s confirmation of our Plan puts us on a definitive path to emerge from restructuring with a stronger balance sheet and healthy liquidity position to continue making network and software investments for the benefit of our customers,” said Tony Thomas, president and chief executive officer. “I want to thank the entire Windstream team for remaining focused on our customers and for tirelessly providing essential communications services during the reorganization process.”

Mr. Thomas continued, “We look forward to beginning this new chapter for Windstream. When we emerge, our lenders will become our new owners and strategic partners and are aligned with our long-term strategy and mission to deliver quality and reliable services. As a private company, Windstream will have increased flexibility to invest in our network, accelerate our transformation and return to growth. Together, we will emerge from this process as a stronger company able to successfully compete in the communications marketplace.”

https://investor.windstream.com/news/news-details/2020/Windstream-Restructuring-Plan-Confirmed-by-Court/default.aspx