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Windstream Emerges from Bankruptcy, Promises More Fiber Broadband

Phillip Dampier September 22, 2020 Consumer News, Rural Broadband, Windstream No Comments

Windstream’s new logo

Windstream has emerged from Chapter 11 bankruptcy as a new privately held company controlled by Elliott Management Corporation, an activist hedge fund known for squeezing expenses out of companies and eventually selling its stake and exiting the business.

As a restructured company, Windstream shed almost two-thirds of its debt, amounting to more than $4 billion. The company will almost immediately tap $2 billion in new capital, targeting more spending on shedding copper wiring in several of its service areas, replaced by gigabit fiber that will primarily target its business customers. Windstream’s budget to upgrade residential customers is reportedly considerably less, but some customers will see upgrades in the future.

“Today marks the start of a new era for Windstream as an even stronger, more competitive company,” Windstream president & CEO Tony Thomas said in a statement released late Monday. “With the support of our new owners and current operational momentum, Windstream will continue advancing our long-term growth objectives while providing our customers with quality and reliable services.”

Thomas

The most immediate change most customers will notice is a new logo, which the company says aligns with the three segments of the business: consumer broadband, business customers, and wholesale/reseller clients.

Paul Sunu, who used to serve as the CEO of FairPoint Communications before it was sold to Consolidated Communications, is Windstream’s new chairman of the board.

“Tony and the Windstream team have made significant strides in the last 18 months to better position the company to compete for the long term,” Sunu said Monday. “The new board and I are confident that we have the right management team and right strategy to accelerate Windstream’s transformation, return to growth and drive sustainable value creation.”

Windstream was a publicly traded company since its 2006 spinoff from Alltel Corporation. As a private company, it will now answer primarily to its debt holders who acquired the company’s old debt in its bankruptcy.

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Stop the Cap!