Norwalk-based Frontier Communications has secured another key approval for its Chapter 11 restructuring plan.
The company provides phone, internet and video services in 25 states, and has an operations center in New Haven. It originally filed for bankruptcy in April, and company leaders hope it will emerge from Chapter 11 in early 2021.
The New York Public Service Commission is the latest agency to sign off. According to Frontier, it now has the required regulatory approvals related to its restructuring for 10 states: Arizona, Georgia, Illinois, Minnesota, Nebraska, Nevada, New York, South Carolina, Utah and Virginia.
The company’s bankruptcy plan would eliminate more than $10 billion in debt, and give senior creditors an ownership stake in the company.
The U.S. Bankruptcy Court for the Southern District of New York granted approval in August.
Regulators in multiple states, including Connecticut’s Public Utilities Regulatory Authority (PURA), still need to review and approve the plans.
Mark Nielsen, Frontier’s executive vice president and chief legal officer, said Frontier is “building a stronger financial foundation to provide a better experience” for its customers through its restructuring.
“I am pleased with our continued progress in receiving state approvals and appreciate the constructive engagement we have had with regulators across our service territories, including our most recent approval in New York,” Nielsen said in an announcement. “We now await approval in just a few states, including our home state of Connecticut.”
In June, PURA announced it had determined that Frontier’s draft plan of reorganization was “preliminary in nature and subject to change,” and therefore not ripe for its consideration. PURA has since indicated it expects to make a decision in early 2021.