Frontier Communications to Skip Payments
"Frontier Communications Corp. will forgo coupon payments due March 15 as it prepares to file for bankruptcy with a plan that cuts its debt and hands control of the company to existing creditors, according to people with knowledge of the plans."The April 2020 maturity traded at 35 cents!
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Do the creditors want control of the company? -- I'm sure they'd prefer their money back, especially with economic trouble looming, and the fact Frontier already sold key assets.
Stock is down exactly 50% since the day after reporting Q3 earnings, which was November 6, 2019.
Frontier Communications Corp. expects to file for bankruptcy as soon as Tuesday night with a plan to hand control to its unsecured creditors, according to people with knowledge of the matter. The telecom company is finalizing a restructuring plan that would see its $10.9 billion of unsecured notes convert to equity, with holders also receiving about $750 million in new notes, the people said. Frontier’s secured debt would be left in place. The people asked not to be identified discussing the
confidential plan, which would be filed ahead of debt payments due April 15. Frontier, which provides internet, TV and phone service in 29 states, would continue operating while in bankruptcy, helped by a debtor-in-possession loan still being negotiated on Tuesday that could be around $500 million, the people said. The Norwalk, Connecticut-based company expects to file for Chapter 11 protection in White Plains, New York, they said. A representative for Frontier declined to comment. Frontier has been negotiating with its creditors for months toward a restructuring deal that would cut some of its approximately $17.5 billion of debt. It triggered a grace period on March 16 by skipping payments due on that day. The company previously disclosed restructuring terms under discussion that would cut its debt by about $11.7 billion."
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