Windstream Holdings, the parent company of the telecom which employs several hundred people in Rochester, has filed for Chapter 11 bankruptcy protection.
This happened after Windstream lost a court battle with a company called Aurelius Capital Management over the spinoff of some of Windstream’s assets.
Windstream says the Chapter 11 filing is needed to address the financial impact of a federal court decision and the impact it would have on consumers and businesses in the states where it operates.
President and CEO of Windstream, Tony Thomas, says that, “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. We acted decisively to secure the long-term financial stability of Windstream, 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.”
Windstream has about 700 employees in Rochester and just over 1,000 in New York State. A company spokesperson tells WXXI News that Windstream is committed to operating the business as usual, “and providing exceptional service to our Rochester business customers.”
Windstream says it has a $1 billion commitment in financing from Citigroup Global Markets to support its operations.
