Frontier Communications Files for Bankruptcy Protection

Norwalk-based Frontier Communications Corporation has filed for bankruptcy protection.

CNBC reports that the company said it would file for bankruptcy protection as it restructures to cut more than $10 billion in debt.  

The company voluntarily filed petitions under Chapter 11 of the United States Bankruptcy Code in the Southern District of New York, according to a news release from the company.

Frontier said it expects to continue providing service to customers without interruption and to work with its business partners throughout the court-supervised process.

“We are undertaking a proactive and strategic process with the support of our Bondholders to reduce our debt by over $10 billion on an expedited basis. We are pleased that constructive engagement with our Bondholders over many months has resulted in a comprehensive recapitalization and restructuring. We do not expect to experience any interruption in providing services to our customers,” said Robert Schriesheim, chairman of the finance committee of the board of directors said in a statement.

President and CEO Bernie Han said the COVID-19 pandemic is impacting impact the entire business community.

“(O)ur team is focused on ensuring the health and safety of our employees and customers. The services we provide to our customers keeps them connected, safe and informed, and I would like to thank our team for their continued dedication, especially in light of the current environment,” he said.

Frontier added that it intends to move ahead with the sale of its Washington, Oregon, Idaho, and Montana operations and assets to Northwest Fiber for $1.352 billion in cash.

You can read the full news release here.

The Chapter 11 filing comes at a time when state officials are investigating Frontier Communications.

Attorney General William Tong and Consumer Protection Commissioner Michelle Seagull said the investigation comes after consumer complaints about what they called “excessive charges, poor service quality and unsatisfactory customer service” that started after Frontier acquired Southern New England Telephone Company in 2014.

Together, the Office of the Attorney General and Department of Consumer Protection have received more than 1,000 complaints since June 2015.

The Office of the Attorney General and the Department of Consumer Protection are looking into whether Frontier violated the Connecticut Unfair Trade Practices Act.

Frontier Communications issued a statement saying  the company “does not comment on pending matters."