Frontier Communications is reportedly considering filing for bankruptcy in March.
The company wouldn't confirm that, but said it is evaluating capital structure and trying to reduce debt.
In this situation, the company would likely file for Chapter 11 bankruptcy, which would allow it to keep operating.
Frontier Communications is evaluating its financial structure and looking to reduce debt as reports swirl that the company is considering a bankruptcy filing.
Frontier, based in Norwalk, Conn. provides customers in 29 states with TV, internet and phone services, has approached creditors with a deal that includes filing for bankruptcy by mid-March, according to Bloomberg News, which cited anonymous sources with knowledge of the matter.
The company must address $356 million in debt, which comes due on March 15, the people told Bloomberg; executives met with creditors last Thursday, telling them that Frontier wants to negotiate a “pre-packaged agreement” before the debt is due.
A deal like the one Frontier is reportedly considering would likely involve filing for Chapter 11 bankruptcy, Bloomberg noted, which would allow the company to restructure its debt and continue to operate. Customers would likely not notice a change in their service.
“Frontier’s business and operations are solid and serving our customers remains our top priority,” Frontier spokesperson Javier Mendoza said this week.
“As we have said publicly, Frontier is evaluating its capital structure with an eye to reducing debt and interest expense so as to be able to better serve our customers. Our customers should expect no changes as we remain focused on providing quality communications services.”
Frontier has gone through several rounds of layoffs in the last four years, with 1,000 jobs cut nationwide in 2016 and 280 positions eliminated at a Henrietta call center, near Rochester, last year.
The company operates in 38 counties across New York state and employs about 2,400 New Yorkers.
The company has invested nearly $540 million in its New York internet network, bringing service to 85,000 households, according to its website.
While its operation is widespread, it has been criticized in New York for service hiccups and slow speeds.
Sarah Taddeo is the consumer watchdog reporter for USA Today Network's New York State Team. She investigates stories about your consumer rights, including scams, negligent landlords, safety issues and wayward businesses. Got a story tip or comment?
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