Windstream Bankruptcy Timeline & Status
“We are disappointed in, and frankly surprised by, the ruling and will be taking immediate steps to pursue all available options, including post-trial motions and an appeal. Additionally, we will work with our creditors on the next course of action. Windstream provides critical voice and data services to customers across the U.S. We remain committed to serving them and ensuring they realize the maximum benefit in transitioning to next-generation technology solutions and premium broadband services.”
“We take no pleasure in Windstream’s resulting financial predicament. Windstream could easily have averted it – first by not playing fast and loose with its noteholders in 2015, hoping nobody would hold the company to account, and second by settling. Instead, Windstream wasted an exorbitant amount – more than would have been needed to settle with us at the time – on an ineffective exchange offer and then on litigation.
Windstream's Chapter 11 Bankruptcy Filing
February 25, 2019: Windstream files voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in a U.S. Bankruptcy Court. In a prepared statement, Thomas says:“Taking this proactive step will ensure that Windstream has access to the capital and resources we need to continue building on Windstream’s strong operational momentum while we engage in constructive discussions with our creditors regarding the terms of a consensual plan of reorganization. We acted decisively to secure the long-term financial stability of Windstream, and we are confident that, upon completion of the reorganization process, we will be even better positioned to invest in our business, expand our speed and capabilities for our customers and compete for the long term.
- continue paying employees;
- maintaining relationships with vendors and business partners; and
- serving customers as usual.
- Windstream has received a commitment from Citigroup Global Markets Inc. for $1 billion in debtor-in-possession (“DIP”) financing.
- That financing, pending court approval, combined with access to the cash generated by the company’s ongoing operations, will be available to meet Windstream’s operational needs and continue operating its business as usual, the company says.
Windstream Court Approval, Stock Delisting
February 26, 2019: The U.S. Bankruptcy Court grants Windstream interim approval to access up to $400 million of its $1 billion in debtor-in-possession (“DIP”) financing. This financing, combined with access to the cash generated by the Company’s ongoing operations, is available to meet Windstream’s operational needs and continue operating its business as usual, the company says.Windstream also received Court approval to operate in the normal course of business without interruption or disruption to its relationships with its customers, vendors, channel partners and employees, the company says.Windstream will pay vendors in full for all goods received and services provided to the Company after the filing date, February 25, 2019, the company adds.March 6: Windstream delisted from Nasdaq. Now trades via OTCPK:WINMQ.WindStream Creditors
March 13: Windstream unsecured creditors list includes:- Federal Pension Benefit Guaranty Corp.
- Communications Workers of America
- AT&T
- VeloCloud Networks
- Crown Castle Fiber
- LEC Services
- UMB Bank
Windstream Financial Results
March 15, 2019: The company announced Q4 and full-year 2018 results. Among the key data points:- Total revenue was $1.39 billion for Q4 2018, down from $1.5 billion in Q4 2017.
- Net loss was $549.2 million in Q4 2018, smaller than the $1.8 billion net loss from Q4 2017.
- The company claims to be the largest provider of SD-WAN services in the United States, with more than 1,800 customers in over 15,000 locations nationwide and growing.
"We are confident we will emerge from the financial restructuring process as a healthier and even stronger company than we are today, and we are excited about the opportunities that lie ahead."
