LR firm’s chief exec seeks OK for deal
Windstream lease focus of hearing
Windstream Holdings Inc. CEO Tony Thomas spent two hours on the witness stand Thursday morning advocating for approval of a network-leasing settlement that would help the company emerge from bankruptcy in August.
Windstream is asking a federal bankruptcy judge to approve the company’s settlement agreement with Uniti Group Inc. over a $650 million annual leasing arrangement between the two Little Rock firms. Windstream filed suit in July to alter the agreement, saying the contract for it to use Uniti’s network was burdensome and too costly.
As part of the settlement, Uniti agreed to invest up to $1.75 billion to improve Windstream’s network through 2030. Uniti also will pay Windstream about $490 million in cash and purchase fiber line assets from Windstream for another $285 million.
That investment is key to Windstream continuing as a viable company, Thomas said Thursday. “Without that capital investment, I’d be deeply concerned about where the company is headed,” Thomas testified.
The infrastructure investments from Uniti will allow Windstream to ex
pand 1 gigabyte internet service to its customers and is critical to Windstream’s ability to compete with cable providers, Thomas said under questioning.
The hearing Thursday was conducted by U.S. bankruptcy Judge Robert Drain, who did not issue an immediate ruling. There is no firm timetable for the judge’s order in the case.
The settlement agreement, though, is a “core component” of the business-restructuring plan Windstream has submitted to emerge from bankruptcy protection, Windstream adviser Nick Leone has testified.
In the hearing, Thomas acknowledged the restructuring
plan and the Uniti settlement are “highly integrated.”
“We do believe we need to resolve Uniti … before we go forward with a reorganization,” Thomas told the court. The hearing was held online and by telephone connection.
In March, Windstream announced that its leading creditors had signed off on the business restructuring plan, which would reduce the company’s debt by more than $4 billion and allow Windstream to exit bankruptcy protection by August. The company entered bankruptcy in February 2019.
That restructuring plan also must be approved by Drain.
Both Little Rock companies are scheduled to release first-quarter earnings on Monday.
Windstream will be first out of the gate with plans to announce earnings before the stock market opens. Along with the release, the company’s executive team will provide prerecorded remarks available by webcast at 7:30 a.m. at https://investor.windstream.com/home/ default.aspx.
After the stock market closes Monday afternoon, Uniti Group plans to release its earnings in a conference call at 3:15 p.m.
The dial-in number for the conference call is (844)513-7153, conference ID is 9469138. The call also will be webcast live and can be accessed at www.uniti.com. A replay will be available for the next 14 days by dialing (855)859-2056.
The hearing is scheduled to resume at 1 p.m. today.