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[Slashdot] - Frontier Files For Bankruptcy, Says Its Broadband Service Won't Get Any Worse

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Frontier Communications filed for Chapter 11 bankruptcy yesterday, but the struggling telecom said its service to customers won't be affected by the financial restructuring. Ars Technica reports: "Frontier expects to continue providing quality service to its customers without interruption and work with its business partners as usual throughout the court-supervised process. The Company has sufficient liquidity to meet its ongoing obligations," Frontier said in last night's bankruptcy announcement. Frontier filed in the U.S. Bankruptcy Court for the Southern District of New York. Frontier offers Internet service in 29 states but expects to complete a $1.4 billion sale of operations in Washington, Oregon, Idaho, and Montana to Northwest Fiber by April 30. In the 25 remaining states where it will keep offering service, Frontier has 2.6 million Internet subscribers, with 1.4 million on DSL and 1.2 million on fiber. "The bankruptcy filing marks the end of an era during which Frontier Communications racked up roughly $17.5 billion in debt as part of an aggressive expansion campaign that turned it into one of the nation's largest telecom companies," The Wall Street Journal wrote today. Frontier expanded over the years in part by buying former Verizon and AT&T wireline operations. As part of its bankruptcy, Frontier said it will "reduce our debt by more than $10 billion" in an agreement that gives bondholders more equity in the company. Frontier also obtained $460 million in new financing and said it will have "significant financial flexibility to support continued investment in its long-term growth."

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Read more of this story at Slashdot.

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