Frontier Communications Files For Bankruptcy Under Chapter 11

TAMPA BAY, FL — One of Tampa Bay's two major cable and Internet providers, Frontier Communications Corp., announced Tuesday that it has filed for Chapter 11 bankruptcy, requesting to restructure $10 billion in company debt.

Together with its subsidiaries, Frontier Communications has entered into a Restructuring Support Agreement with bond holders representing more than 75 percent of Frontier’s approximately $11 billion in outstanding unsecured bonds.

Under the RSA, the bond holders have agreed to support a plan to reduce the company’s debt by more than $10 billion and provide financial flexibility to support continued investment for long-term growth.

Frontier Communications and its subsidiaries voluntarily filed petitions under Chapter 11 of the United States Bankruptcy Code in the Southern District of New York. The company is based in Norwalk, Connecticut.

Chapter 11 is a form of bankruptcy that involves a reorganization of a debtor's business affairs, debts and assets. This version of bankruptcy gives the debtor a fresh start.

Frontier entered the Tampa Bay market when it purchased Verizon's Internet, cable and phone services in 2016.

Frontier expects to continue providing uninterrupted service to its customers throughout the court-supervised process. Its directors said the company has sufficient liquidity to meet its ongoing obligations.

“We are undertaking a proactive and strategic process with the support of our bond holders to reduce our debt by over $10 billion on an expedited basis," said Robert Schriesheim, chairman of the finance committee of the Board of Directors.

"We do not expect to experience any interruption in providing services to our customers," he added. "Under the RSA, our trade vendors will be paid for goods and services provided both before and after the filing date.”

Frontier CEO and President Bernie Han said the restructuring will give the company the financial flexibility to allocate capital resources and add talent so it can enhance its services.

“With this agreement with our bond holders, we can now focus on executing our strategy to drive operational efficiencies and position our business for long-term growth,” said Han. “At the same time, the COVID-19 pandemic continues to impact the entire business community, and our team is focused on ensuring the health and safety of our employees and customers. The services we provide to our customers keeps them connected, safe and informed."