Reorganization plan charts right course forward

Windstream filed its reorganization plan with the court April 1. The plan, which will reduce the company’s debt by approximately $4 billion, charts the right course forward for the company and its stakeholders. The company expects to emerge from restructuring as early as the end of summer, pending court and regulatory approvals.

On March 2, Windstream announced that it had entered into a Plan Support Agreement with certain creditors regarding the main terms of a comprehensive financial restructuring. The company also announced it had reached a settlement agreement with Uniti Group Inc. to resolve the pending litigation between the two companies.

The Uniti agreement, which was approved by the court on May 8, calls for Uniti to invest $1.75 billion in the network, enabling Windstream to deliver 1 Gig speeds to approximately half of its Kinetic footprint. Uniti also will pay Windstream about $490 million and purchase certain unused and underutilized dark fiber assets from Windstream for an additional $285 million.

Windstream voluntarily filed for Chapter 11 reorganization in the U.S. Bankruptcy Court for the Southern District of New York on Feb. 25, 2019. Windstream is continuing to operate in the normal course during the financial restructuring process.

“Our new capital structure will enable continued innovation in vital enterprise-class offerings such as SD-WAN and UCaaS, promote the deployment of on-net solutions, and reinforce our ability to deliver an amazing customer experience supported by a superior digital platform. Additionally, our new strategic partnership with Uniti will allow us to expand 1 Gig fiber-based internet service to more than half of our Kinetic broadband footprint over the next several years.”

Tony Thomas
PRESIDENT AND CHIEF EXECUTIVE OFFICER

We are serving our customers as usual and maintaining our relationships with vendors and business partners.