An area internet provider, Windstream, filed for bankruptcy last week. Company officials have stated that customers in the south Georgia area need not be concerned about losing their services.
“Our customers in southern Georgia will not see any impact from the decision to voluntarily file for Chapter 11,” Windstream spokesman Scott Morris said Thursday, in a phone interview with the Courier. Morris said the Chapter 11 filing, “allows companies to reorganize their finances through a court supervised process while still operating as usual.”
He said local customers will not experience any impact to appointments or pricing as a result of Windstream’s bankruptcy, and that Windstream employees, “are still on the job.”
“We want to reassure customers they are our priority and we will continue to serve them through this crisis,” he said. “We expect to emerge in a stronger financial position once the bankruptcy process is complete.”
Windstream Holdings, Inc. announced last week that the company and all of its subsidiaries have filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York. The company intends to use the court-supervised process to address debt maturities that have been accelerated as a result of the recent decision by Judge Jesse Furman in the Southern District of New York against Windstream Services, LLC, a subsidiary of the company.
“Following a comprehensive review of our options, including an appeal, the Board of Directors and management team determined that filing for voluntary Chapter 11 protection is a necessary step to address the financial impact of Judge Furman’s decision and the impact it would have on consumers and businesses across the states in which we operate,” said Tony Thomas, president and chief executive officer of Windstream. “Taking this proactive step will ensure that Windstream has access to the capital and resources we need to continue building on Windstream’s strong operational momentum while we engage in constructive discussions with our creditors regarding the terms of a consensual plan of reorganization. We acted decisively to secure the long-term financial stability of Windstream, and we are confident that, upon completion of the reorganization process, we will be even better positioned to invest in our business, expand our speed and capabilities for our customers and compete for the long term.
“I want to express my appreciation for the continued focus of the entire Windstream team as well as the loyalty and patience of our customers, vendors, channel partners and other stakeholders,” continued Thomas. “With approval from the court, we will continue paying our employees, maintaining our relationships with our vendors and business partners and serving our customers as usual. We remain committed to providing critical voice and data services and ensuring customers realize the maximum benefit in transitioning to next-generation technology solutions and premium broadband services.”
Windstream has received a commitment from Citigroup Global Markets Inc. for $1 billion in debtor-in-possession (“DIP”) financing, company officials said in a news release. Following approval by the court, this financing, combined with access to the cash generated by the company’s ongoing operations, will be available to meet Windstream’s operational needs and continue operating its business as usual.
In conjunction with the filing, the company has filed a number of customary first day motions. These motions will allow the company to continue to operate in the normal course of business without interruption or disruption to its relationships with its customers, vendors, channel partners and employees. The company expects to receive court approval for these requests and intends to pay vendors in full for all goods received and services provided to Windstream after the filing date.
For more information on Windstream’s filings, visit windstreamrestructuring.com