Windstream Holdings Inc. (fka WINMQ)

[linda1]

Here are some more comments by the CEO
on the Master Lease Agreement:


“ During the conference call with Wall Street
analysts and investors, Thomas said the federal
court approved the investment grade financing
package in mid-April during a series of so-called
“second-day” motions. Surprisingly, Thomas said
that the fair value of the assets the company is
renting from Uniti is $7.5 billion, which the
Windstream CEO called “significantly above market.”

Thomas said Windstream has utilized fiber to
replace copper in select portions of its rural
broadband markets, noting that many of those
investments have boosted Uniti’s earnings and
revenue under the terms of the master lease.
However, he said the remaining tenant capital
improvements are expected to have little or
no value at renewal of the lease in 2030.

Given those factors, Thomas said Windstream
estimates that the lease payment could be
reduced by 80% or more if the lease were to
be renewed in 2030, because of the significant
decline in the value of landline assets. He said
diversity of such new technologies, such as
5G fixed wireless, is integral in evaluating the
current lease.

“In the context of its Chapter 11 cases, Windstream
is evaluating all options regarding the Uniti lease,
including renegotiation, recharacterization, unwinding
the lease, as well as an outright rejection of the lease,”
said Thomas. “More details will emerge as the
Chapter 11 process evolves.”


https://talkbusiness.net/2019/05/windstream-reports-1q-loss-of-2-3-billion-amid-bankruptcy-cloud-executive-pay/