Tuesday, February 11, 2020

"‘Strong likelihood’ Frontier will file soon for bankruptcy" $FTR

Local news article in Utah:

During a conference with the Utah Public Service Commission on Jan. 22, representatives with Frontier and investigators told commissioners that a “strong likelihood exists” that Frontier Communications’s parent company “will file soon for bankruptcy,” resulting in the discovery phase of the investigation being delayed.
The Frontier shares are down to 59 cents. Bond prices:
So the bond prices also imply that they file instead of paying any 2020 maturities.

Previously on FTR:

5 comments:

Ponch73 said...

Any thoughts on why the stock still has a bid? Do you think that the equity markets are assuming some residual value left over after restructuring?

CP said...

Look at SHLDQ. People won't stop paying real money for a stock until you physically take away their ability to do so.

eahilf said...

link

"Frontier sits on massive $17.5 Billion legacy debt Load. -- The majority of Frontier unsecured debt trades at 45 to 47 cents/dollar (as of Dec 13.2019). -- My Conclusion: Unsecured Note holders will be lucky to get 7 cents on the dollar; Senior Secured holders 24 cents on the dollar."

So what was all that "legacy debt" used for?

CP said...

Curious, what's the guy's thesis that the bonds are going to get 7 cents? I think they are overvalued in the high 40s, but not that overvalued.

Anonymous said...

Frontier Communications Corp. paid interest due Feb. 15 on its bonds maturing in 2026 and 2031 as the telecom services provider continues restructuring talks with
creditors, according to people familiar with the situation.
* Frontier made coupon payments on its 6.8% notes due 2026 and 9% notes due 2031, the people said, who asked not to be identified discussing a private matter
* Certain lenders signed confidentiality documents that restrict their ability to trade as the company continues negotiations for a potential bankruptcy filing around mid-March, said the people
* Frontier’s bonds are trading slightly higher Tuesday, though several are still quoted below 50 cents on the dollar, according to Trace