Report: Frontier looking at restructuring options
Frontier Communications, which still employs hundreds of people in the Rochester area, reportedly is considering a financial turnaround deal that could involve seeking Chapter 11 bankruptcy.
That’s according to a story reported by Bloomberg Newslast week. The financial news organization says that Frontier executives met with creditors and advisers last Thursday and told them the company wants to negotiate a pre-packaged agreement before $356 million of debt payments come due on March 1.
Bloomberg notes that such deals typically involve a Chapter 11 bankruptcy, which would allow the company to keep operating without interruption of its telephone and broadband service.
The story says that Frontier has been in talks with advisers about possible solutions to its $17.5 billion debt load.
Bloomberg says that creditors have been pushing the Connecticut-based company for a restructuring plan.
A spokesman for Frontier, Javier Mendoza, issued this statement:
Frontier’s business and operations are solid and serving our customers remains our top priority. As we have said publicly, Frontier is evaluating its capital structure with an eye to reducing debt so as to be able to better serve our customers. Our customers should expect no changes as we remain focused on providing connectivity services without interruption to our residential customers, institutions and businesses. We are proud to continue to offer well-paying jobs and benefits that contribute to the economic health of the communities we serve.
Frontier, which has roots in the former Rochester Telephone Company, has about 750 employees in Rochester and more than 1,500 in New York state. Frontier provides communications services in 29 states.