Frontier Communications has been recently struggling to service the growth of cord cutting. For months now Frontier Communications has been facing a possible sale or bankruptcy as it tries to handle its debt and growing competition.
Bloomberg reported that Frontier Communications has informed creditors that it plans to file for bankruptcy in March 2020.
Creditors have been pushing Frontier for a plan to pay off its $17.5 billion in debt, according to Bloomberg. Bankruptcy seems to be how Frontier hopes to keep the doors open as it struggles with the growth of cord cutting.
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 CEO Dan McCarthy.
Earlier this month, Frontier Communications sold its operations in four states for $1.35 billion to help pay off its debts. Frontier sold said operations to private investment firms WaveDivision Capital LLC and Searchlight Capital Partners LLC. The states that are impacted with this deal are Washington, Oregon, Idaho, and Montana according to Reuters.
Now the question is what will be the long-term ramifications of this bankruptcy. If you are a customer your service will continue for now, but what happens next? We will have to wait and see.
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