Frontier may soon exit bankruptcy, with news that the FCC has approved the company’s restructuring plan. Frontier now has approval from 13 states and reports it will emerge from Chapter 11 in “early 2021.”
Frontier needs approvals from 4 additional states to complete its exit from bankruptcy. The U.S. Bankruptcy Court for the Southern District of New York confirmed Frontier’s reorganization plan in August 2020. That plan reduces Frontier’s debt by about $10 billion. The company also recently appointed a new CEO to manage its post-bankruptcy plan.
“We continue to make important progress in our constructive engagement with regulators across our service territories, and this approval from the FCC marks a major milestone,” said Bernie Han, President and Chief Executive Officer in a press release. “We continue to await approval in just four states and are working to expedite those approvals to enable the Company to emerge from Chapter 11.”
Frontier is making concessions to get those state approvals to exit bankruptcy. To gain California’s approval, Frontier had to commit to spend $1.75 billion in network improvements and bring fiber to 350K additional locations.
Frontier also recently won sizable RDOF funding, to the tune of $371 million. Most of those funds, $247 million, are earmarked to build broadband to 79K locations in West Virginia. The company is getting some scrutiny about its ability to deliver in that state though.
Frontier says it will transform itself to be a leading FTTP provider once it exits bankruptcy. It will have its work cut out for it to accomplish that goal. When it entered bankruptcy, the company reported that 11 million of the 14 million homes it passed had access to DSL only.
14 thoughts on “FCC Gives its Blessing on Frontier Restructuring, Company Expects to Exit Bankruptcy Soon”
What about rural people in Ohio. Frontier won’t upgrade our internet services so that our internet is considered high speed and it is keeping me from being able to work from home.
What about their Stock? Is the Judge going to delist it losing thousands of employees that believed in Frontier to lose all of their invested money?
I truly hope the judge will not delist the stock, it was the CEO’s that ran the company into the ground, The people that hold bonds against the company have be taken care of, which I read about.
Also the CEO did a reverse, two for one on the stock or was it six to one, I,m not sure on that but I saw some people that took them to court on that one.
Good luck for all the stock holders.
Bernie doesn’t seem to want to answer your question in his many updates about Frontier. The last I heard is the stock is now worthless, we investors lost every dollar. Only the bond holders are getting stock in the new Frontier. Every article should close with one sentence to remind everyone what Chapter 11 really means……that stock holders lost everything they invested.
You bet! All common shares will become “worthless” once Frontier fully emerges from bankruptcy!
I find it hard to understand How Frontier can declare bankrupt and stock holders lose total value . Yet the company can come out of bankrupt soon and the stock is a very high price.
Frontier says their service isn’t available in my area however, my next door neighbor has frontier, neighbor across street has frontier,yet I’m not able to get their service. It’s not surprising to read they were in bankruptcy a few months back. Was told by frontier technician at end of my street there were 750 available slots for future services and I’m looking for full pkg, tv, phone, internet. My home is also already wired in for phone lines since the early 1970’s. Seems they would not turn away customers, Star link will be here soon, so long frontier !!
The stock will skyrocket once it is out of bankruptcy!
Nope! Only the bond holders will receive “new” shares with a “new” ticker symbol with rise. All current common shares will become worthless!
Frontier has some great people working in operations, but the management has become toxic and they threaten to fire or suspend employees quite often. They do not trust their own employees and hire contractors to come in and do a half assed job, which will cost the company more revenue, leaves customers out of service longer and makes for a weaker country overall.
The facts speak for themselves Frontier is at the very bottom of reputable ISP service providers. Their call centers are a joke and their billing is a never ending nightmare. So do you really think coming out of bankruptcy is going to fix all their problems? I don’t
Also in the last 5 years they have gone through 4 CEOs they keep trying to reinvent themselves but they can’t why because they are simply no damn good!
Sell your common shares well you have a chance! They will become worthless once Frontier is fully out of bankruptcy!
Once Frontier comes put of service I will be switching ISP’s.