Troubled phone and internet provider Frontier Communications secured approval from the Federal Communications Commission (FCC) for its Chapter 11 restructuring and expects to emerge from bankruptcy early this year, the company announced today.
Under the restructuring plan, Frontier will cut its debt by more than $10 billion and give senior creditors an ownership stake in the company.
“We continue to make important progress in our constructive engagement with regulators across our service territories, and this approval from the FCC marks a major milestone,” said Frontier President and CEO Bernie Han.
A total of 13 states have reviewed and approved Frontier’s restructuring, with an OK from Connecticut’s Public Utilities Regulatory Authority (PURA) and three other states still pending.
PURA rejected a draft plan for Frontier’s restructuring last June as “preliminary in nature and subject to change,” but has since indicated it expects to make a decision early this year.
