As Cord Cutting Grows Frontier Communications May Soon Go Into Bankruptcy





woman at table frustrated with billsFor years now cord cutting has slowly been eating into cable TV. Now it seems Frontier Communications is struggling and according to analysts, Frontier may consider Chapter 11 Bankruptcy as early as the first quarter of 2020.

According to Bloomberg, creditors are pushing Frontier for a plan to pay off its $17.5 billion in debt. This plan reportedly very likely 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 their restructuring plan and will reportedly replace current 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 out there 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 as they address this growing trend of cord cutting into the profits they offer.

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