Frontier Communications announced Friday that the California Public Utilities Commission has unanimously voted to approve its emergence from Chapter 11. The company says it plans to emerge from its bankruptcy in the coming weeks.
Frontier filed for Chapter 11 bankruptcy on April 15, 2020 while filing motions with the court to continue providing service to customers without disruption. The company planned to put a restructuring agreement in place to reduce debt by over $10 billion.
“With a recapitalized balance sheet, we will have the financial flexibility to reposition the Company and accelerate its transformation by allocating capital resources and adding talent to enhance our service offerings to our customers while optimizing value for our stakeholders,” Robert Schriesheim, chairman of the finance committee of the board of directors, said in a statement when the company initially shared its plans to file for Chapter 11.
The Plan for Reorganization was approved on August 21 by the U.S. Bankruptcy Court for the Southern District of New York.
“Upon emergence, the Company will have reduced its total outstanding indebtedness by more than $10 billion and with a significantly stronger financial foundation, Frontier will be well positioned to accelerate our transformation, invest in infrastructure and drive efficiencies to better serve our customers,” the company shared on a website dedicated to the restructuring.