In January, we reported on Frontier Communications’ struggle to survive with the growth of cord cutting. At that time, reports showed that Frontier was planning to file for bankruptcy this month. Now, Frontier has announced that it will invoke a 60 day grace period to pay its debt, originally due March 16.
“We remain actively engaged in constructive discussions with our bondholders as the Company continues to evaluate its capital structure with an eye to reducing debt and interest expense,” Frontier said in a statement. “As part of this process, Frontier has made the decision to take advantage of the 60-day grace period allowed under the indenture to facilitate ongoing discussions as we work to reach a comprehensive resolution. Importantly, we continue to provide quality service to our customers without interruption and work with our business partners as usual.”
Creditors have been pushing Frontier for a plan to pay off its $17.5 billion in debt, according to Bloomberg. The company was set to make a payment of $320 million on March 15.
Bloomberg reports that another interest payment is due April 1, with a 30 day grace period, and another is due April 15, with no grace period. The company is reportedly negotiating terms of a loan that could keep it running through a bankruptcy filing, but we’ll likely have to wait until mid-April to find out if that plan will be put into place.
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