Little Rock-based Windstream Holdings has finalized its debt restructuring out of bankruptcy, emerged as a privately-held company, and redesigned its corporate logo.
The communications and software company said it has reduced its corporate debt by $4 billion and gained access to $2 billion in new capital.
“Today marks the start of a new era for Windstream as an even stronger, more competitive company,” said Tony Thomas, president and CEO of Windstream. “With the completion of our financial restructuring, we now have an enhanced balance sheet and a robust capital investment program to expand 1 Gig Internet service in rural America and maintain our product and software leadership in SD-WAN and UCaaS for enterprise customers. We are also pleased to continue our strategic partnership with Uniti Group and expand our mutually beneficial relationship. With the support of our new owners and current operational momentum, Windstream will continue advancing our long-term growth objectives while providing our customers with quality and reliable services.”
“I would like to thank our customers, vendors and business partners for their ongoing support throughout this process. I would also like to extend my deepest gratitude to the Windstream team for their dedication to our customers and continued commitment to delivering essential telecommunications services during this unprecedented healthcare crisis,” Thomas added.
Windstream initially filed for Chapter 11 bankruptcy over a year ago after a legal ruling by U.S. District Judge Jesse Furman in New York determined that it had violated bond agreements after splitting off the former Communications Sales & Leasing (CS&L) in April 2015. CS&L was the previous name of Uniti, a real estate investment trust that was spun out of Windstream and manages its fiber optic network.
Furman’s decisive ruling arose from challenges by Aurelius Capital Management and U.S. Bank National Association that the 2015 deal was invalid under the terms of a debt exchange offer and consent solicitations in respect to senior notes issued by its Windstream Services LLC to finance the spinoff. The court further ruled that Aurelius was entitled to a $310.5 million judgment, plus interest from and after July 23, 2018.
At the time of the ruling, Windstream said it would bankrupt the company, which led to the Chapter 11 filing. It also led Windstream, a former Fortune 500 company, to be delisted on the NASDAQ stock exchange. Windstream received court approval to exit bankruptcy earlier this summer.
“Tony and the Windstream team have made significant strides in the last 18 months to better position the company to compete for the long term. The new board and I are confident that we have the right management team and right strategy to accelerate Windstream’s transformation, return to growth and drive sustainable value creation,” said Paul Sunu, chairman of the new Windstream Board of Directors.
Windstream also today unveiled a new corporate logo.