Windstream, a provider of Internet services mainly in rural areas, today has become bankrupt.
Bankruptcy was caused by a judgment of February 15, which could cost hundreds of Windstream millions of dollars. The company said that bankruptcy would help prevent negative impact on customers.
Windstream has filed a reorganization suit in accordance with Chapter 1
The windstream litigation was opposed to the Aurelius Capital Management hedge fund. The company's fiber optic cable network moved the position of one of its bonds, "which banned" on the sale-lease " The Wall Street Journal wrote today.
"Two weeks ago, US District Chief Justice Jessie Furman decided that Windstream had violated the lease agreement and assigned a hedge fund decision of $ 310 million plus interest, Magazine te." The battle highlights the growing practice among hedge funds to find cases where the company has violated bond agreements, even if the issuer is healthy enough to continue to service and refinance its debts. "
Windstream has a debt of 5.6 billion dollars and" has Lost residential and commercial customers by cable and wireless For many years, The magazine marked
Despite the choice not to address, CEO Thomas said that Windstream strongly disagrees with the court's decision and accused Aurelius of engag [ing] in predatory manipulations the market to promote its own financial position. "
"Windstream did not come to Chapter 11 because of failures in work and currently does not foresee the need for restructuring of material operations," Thomas said. "Although it is sad that Aurelius has taken this tactic to drive his windstream profits, we hope to work through the process of financial restructuring, to ensure a sustainable capital structure so that we can maintain our high operating performance and continue to serve our customers for years to come." Thomas called for government regulation of the "unregulated default swap market for a loan."
Windstream had 1,015,000 Internet residential customers as of September 30, 2018, down from 2,400 from the previous year, according to an earnings report. Windstream also offers television and telephone services. Windstream, which also sells business services and corporate networks, recorded revenue of $ 1.42 billion, and net income in the third quarter of 2018 amounted to $ 41 million. Windstream profits fell by 5 percent over the same period last year. The Federal Communications Commission has today posted a bankruptcy claim stating that "they are satisfied that Windstream has made it clear that its reorganization under bankruptcy will not disrupt the service of any consumer".
From 2015, Windstream receives $ 175 million a year in financing by the FCC to bring Internet services to an additional 405,000 homes and businesses. Under the terms of this agreement, Windstream will complete deployment by the end of 2020.
Given that the head of the FCC Wireline Competition Bureau, Chris Monteith, said: "We need to be vigilant in the light of these events to ensure that the service that saves life 911 as well as voice and broadband with which Windstream customers and that the federal funds that Windstream receives via the Connect America Foundation and other universal service programs are used to properly connect rural and low-income Americans with high-speed broadband access.
Windstream today claimed to be liable in the amount of $ 1 billion in Citigroup Global Markets funding. "With the approval of the Court, we will continue to pay our employees, maintaining our relationship with our suppliers and business partners and serving our customers as usual," said Thomas. "We remain committed to providing critical voice and data and guarantee our customers the maximum benefit when switching to next-generation technological solutions and high-speed premium services. " his DSL proposals do not meet the current standards of broadband access. Latest Report on America's Broadband Network Measurement The FCC analyzed Windstream offers an advertised download speed between 3Mbps and 12Mbps. It advertised the download speed between 384 kbps and 1.5 Mbps. According to FCC measurements in September 2017, the actual average wind speed of Windstream did not reach its advertised rates.
In 2015, we wrote about Windstream, asking a potential customer in Nebraska for $ 383,500 in exchange for distributing fiber for several kilometers to the client's business. The customer has found another service provider who has done this job for $ 42,000.
Windstream provides residential services in 18 states, namely Alabama, Arkansas, Florida, Georgia, Iowa, Kentucky, Minnesota, Mississippi, Missouri, Nebraska, New York, Mexico, New York North Carolina, Ohio, Oklahoma, Pennsylvania, South Carolina and Texas.