Do you have Frontier Communications as your home internet or TV provider? Now that company will have new owners in four states. With this deal Frontier Communications will sell its operations in four U.S. states for $1.35 billion 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 a report from Reuters.
Creditors had been pushing Frontier for a plan to pay off its $17.5 billion in debt, according to Bloomberg. This plan reportedly could include bankruptcy.
Creditors had 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. now though it seems it has followed through with a plan to sell part of the company to help pay off its debts.
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