Frontier Communications has been recently struggling to service the growth of cord cutting. Now Frontier Communications is facing a possible sale or bankruptcy as it tries to handle its debt and growing competition.
According to a report from HeraldNet, WaveDivision Capital is on track to close on a possible purchase of Frontier Communications later this month. This would help Frontier Communications avoid a possible bankruptcy.
Creditors are pushing Frontier for a plan to pay off its $17.5 billion in debt, according to Bloomberg. This plan reportedly could include bankruptcy.
Creditors have already hired the consulting firm Altman Viladrie & Co. to perform due diligence on Frontier including a possible reorganization of its business plan. In addition, Frontier is looking for a change in management amid restructuring and will reportedly replace Chief Executive Officer Dan McCarthy.
Frontier has even warned that it may have to file for court protection from its creditors. This would protect the company and help unload debt in bankruptcy. Frontier is not the only cable company in trouble. Windstream Holdings has also asked for protection from its creditors.
The question now is will Frontier end up in bankruptcy and, if so, will it be just the start? There are many small cable TV companies that are reportedly struggling to come to terms with this new, post-cord cutting world. If they fail to come up with a plan, we may see a flood of smaller companies shut down.
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