Windstream Holdings Inc. (fka WINMQ)

[linda1]

Here is the CEO’s explanation for the Chapter 11:



DOCKET # 0027 - PAGE 3:


“ 5. Windstream did not arrive in chapter 11
due to operational failures and, currently,
does not anticipate the need to restructure
material operational obligations.

Instead, as set forth in the First Day Motions,
Windstream hopes and anticipates that
its operations will continue uninterrupted
and its employees will be able to continue
to focus on providing best-in-class service
to all of Windstream’s valued customers,
in each case largely unaffected by these
chapter 11 cases.

The primary aim of these chapter 11 cases
is to serve as a foundation for a financial
restructuring necessitated by an adverse
ruling in the United States District Court
for the Southern District of New York by
Judge Jesse Furman, which found a default
under an indenture governing certain of
Windstream’s unsecured notes. Through
these chapter 11 cases, Windstream hopes
to protect its business as a going concern,
ensure long-term financial stability, and
secure a sustainable go- forward
capital structure. “


If the CEO’s Plan is to not sell any Assets to
pay off the Creditors then the Bonds cannot be
cancelled.


“ its operations will continue uninterrupted “


And if the Bonds are not cancelled then what
reason will the Company have to cancel the
Commons? Generally in a Chapter 11 Assets
are sold to pay off Creditors.


I think that the reasoning in the Seeking Alpha
Article “ Windstream will Survive “ is likely correct -
Bonds and Commons will remain as is:


https://seekingalpha.com/article/4242891-windstream-will-survive


“ Therefore a voluntary pre-packaged bankruptcy
is the logical next step to keep everything as it was.
Noteholders should not be wiped out, Uniti should
not be involved in the process and even
Win shareholders will keep their shares as if
nothing changed. “