Frontier Communications files for bankruptcy protection

April 15, 2020 GMT

CHARLESTON, W.Va. (AP) — Frontier Communications announced Wednesday that the internet, TV and telephone service provider has filed for federal bankruptcy protection and will implement a restructuring plan to reduce its debt by more than $10 billion.

The Norwalk, Connecticut-based company filed for Chapter 11 protection Tuesday in U.S. bankruptcy court for the southern district of New York. The filing will allow the company to reorganize its finances while business operations continue.

Frontier said it will be able to meet its ongoing obligations and that the debt-reducing proposal is backed by the company’s bondholders.

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Under the agreement, “we can now focus on executing our strategy to drive operational efficiencies and position our business for long-term growth,” Frontier President and CEO Bernie Han said in a statement.

Frontier said it has more than $700 million cash on hand and has received commitments for $460 million in debtor-in-possession financing.

Frontier, which has operations in 29 states, said it intends to proceed with the sale of its Washington, Oregon, Idaho, and Montana operations and assets to Northwest Fiber for $1.35 billion in cash.