NORWALK, Conn. – Frontier Communications Corporation (NASDAQ: FTR) ("Frontier" or the "Company") today announced that it has received approvals on an interim basis from the U.S. Bankruptcy Court for the Southern District of New York for the "First Day" motions related to the Company's voluntary Chapter 11 petitions filed on April 14, 2020.
Among other things, the Court has authorized the Company to continue paying employee wages and providing healthcare and other benefits, as well as continue certain customer programs. As previously announced, the Company has obtained commitments for $460 million in debtor-in-possession ("DIP") financing. Subject to Court approval, the Company's liquidity will total over $1.1 billion comprising the DIP financing and the Company's more than $700 million cash on hand.
As previously announced, Frontier entered into a Restructuring Support Agreement ("RSA") with bondholders representing more than 75% of Frontier's approximately $11 billion in outstanding unsecured bonds (the "Bondholders"). The RSA contemplates agreed-upon terms for a pre-arranged financial restructuring plan (the "Plan") that leaves unimpaired all general unsecured creditors and holders of secured and subsidiary debt. Under the RSA, the Bondholders have, subject to certain terms and conditions, agreed to support implementation of a Plan that is expected to reduce the Company's debt by more than $10 billion and provide significant financial flexibility to support continued investment in its long-term growth.
Read the full release here.