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story.lead_photo.caption FILE — Windstream Corporate headquarters at 4001 N Rodney Parham Road is shown in this February 19, 2014 photo. - Photo by Melissa Gerrits

Windstream Holdings Inc. said on Monday it has filed for bankruptcy protection.

The move by the Little Rock-based rural telecom company to seek protection from its creditors comes after a Feb. 15 ruling by U.S. District Judge Jesse Furman who said Windstream defaulted on some of its bonds in 2015 when it spun off real estate investment trust Uniti Group Inc.

Actions by Windstream subsidiary Windstream Services amounted to a breach of its financial covenants, making Aurelius Capital Management, a New York hedge fund, entitled to a $310 million judgment, Furman said.

Windstream had warned a defeat could lead to bankruptcy or liquidation. The default ruling entitles other creditors to demand immediate repayment on debts they hold.

“Following a comprehensive review of our options, including an appeal, the Board of Directors and management team determined that filing for voluntary Chapter 11 protection is a necessary step to address the financial impact of Judge Furman’s decision and the impact it would have on consumers and businesses across the states in which we operate,” Windstream CEO and president Tony Thomas said in a statement. “Taking this proactive step will ensure that Windstream has access to the capital and resources we need to continue building on Windstream’s strong operational momentum while we engage in constructive discussions with our creditors regarding the terms of a consensual plan of reorganization."

Thomas said the company would, with court approval, "continue paying our employees, maintaining our relationships with our vendors and business partners and serving our customers as usual."

The company last week postponed the release of its quarterly earnings report until as late as March 18.

Read Tuesday's Arkansas Democrat-Gazette for full details.


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Archived Comments

  • GOHOGS19
    February 25, 2019 at 12:35 p.m.

    not good

  • TuckerMax
    February 25, 2019 at 12:41 p.m.

    Will the bankruptcy filing include potential malpractice claims against those professional persons or entities that said they could do that in the first place?

  • NunyaB
    February 25, 2019 at 12:53 p.m.

    All I know is they provide the worst internet service ever. My home service switched from Alltel to windstream and I've had nothing but trouble.

  • Packman
    February 25, 2019 at 1:36 p.m.

    Good move for the company. Buys some time to re-structure debt and negotiate with possible competitors to take over assets. Hopefully, no Arkansas jobs will be lost in the process.

  • Knuckleball1
    February 25, 2019 at 1:47 p.m.

    Nunyab, Windstream was spun off from Alltel and run by the same group of people that ran the wire line part of Alltel. At the time this was done Alltel only wanted to be in the wireless business. Most of the Alltel people that was in the wire line part of the company moved over to Windstream.
    Hopefully this will help, some bad decisions were made in past years, buying some things they should not have bought. Many of the employees in Little Rock are good people hopefully they will not loose their jobs.

  • ZeebronZ
    February 25, 2019 at 1:53 p.m.

    Financial smoke and mirrors. Dodge one debt, land in a pile of trouble. Now, file bankruptcy and come out smelling like a rose while the creditors lose all they had in the company.

  • UoABarefootPhdFICYMCA
    February 25, 2019 at 2:10 p.m.

    Their fees and the fees this company has pushed on the internet industry for their money making scams. Yes a windstream bill of 70.80$ is 20$ of fees they.them.tgis company forced down the throats of the people through their lobbying and subsidies they are basically another defunct government charity.
    Windstream is a crap company practicing carpetbagging on the people of Arkansas.
    They were never really that great. One step above 56k.

  • UoABarefootPhdFICYMCA
    February 25, 2019 at 2:12 p.m.

    Direct lobbying by this company brought heavy telecom fees to arkansans.

    Nothing like socialism and communism hand in hand.
    Red foot, blue foot.
    Satanic bird.

  • RBear
    February 25, 2019 at 2:21 p.m.

    And we see barefoot forgot to take his meds today.

  • Wingers
    February 25, 2019 at 2:25 p.m.

    If you would get on Meds we would all be thankful!