The Frontier reorganization plan triggered by the company’s bankruptcy has moved a step closer with the news that the New York Public Service Commission has approved the plan. Frontier, which operates in 25 states, now has approvals in 10 states.
The 10 states for which Frontier has received approval include Arizona, Georgia, Illinois, Minnesota, Nebraska, Nevada, New York, South Caroline, Utah and Virginia.
According to a press release, Frontier now awaits approval in “just a few states,” including its home state of Connecticut.
The U.S. Bankruptcy Court for the Southern District of New York confirmed the Frontier reorganization plan in August.
Frontier Reorganization
Frontier filed for Chapter 11 bankruptcy in April. The company had a high level of debt after purchasing Verizon operations in several states and was seeing declines in its broadband business as customers shifted to cable companies to meet soaring bandwidth demand.
The company has continued to operate, as usual, thanks to “first day” motions and debtor-in-possession financing.
The bankruptcy filing also has not prevented the company from making plans to participate in the Rural Digital Opportunity Fund (RDOF) Auction scheduled to start later this month – a reverse auction that will make funding available for rural broadband deployments.
Jonathan Spalter, president and CEO of USTelecom, weighed in on the Frontier reorganization in today’s press release, noting that “Frontier serves a critical function in providing essential telecommunications services to its customers across the U.S. We are pleased to see swift and substantial support for Frontier’s restructuring, which, upon completion, will enable it to further invest in its services to better meet customers’ needs.”
