Frontier Communications Receives Court Approval of All “First Day” Motions to Support Business Operations

Frontier Communications Corporation (NASDAQ: FTR) (“Frontier” or the “Company”) today announced that it has received approvals on an interim basis from the U.S. Bankruptcy Court for the Southern District of New York for the “First Day” motions related to the Company’s voluntary Chapter 11 petitions filed on April 14, 2020.

Among other things, the Court has authorized the Company to continue paying employee wages and providing healthcare and other benefits, as well as continue certain customer programs. As previously announced, the Company has obtained commitments for $460 million in debtor-in-possession (“DIP”) financing. Subject to Court approval, the Company’s liquidity will total over $1.1 billion comprising the DIP financing and the Company’s more than $700 million cash on hand.

Robert Schriesheim, Chairman of the Finance Committee of the Board of Directors, said, “We are pleased to have received approval of our First Day motions, which will allow the business to continue operating, providing important services to our customers without interruption and maintaining our long-standing relationships with our vendors and business partners. Our comprehensive restructuring plan will result in a recapitalized balance sheet with a $10 billion reduction in our debt on an expedited basis, which will substantially enhance our financial flexibility and facilitate our ability to reposition Frontier and accelerate our broad-based strategic transformation. We appreciate the prompt action by the Court in approving our First Day motions.”

As previously announced, Frontier entered into a Restructuring Support Agreement (“RSA”) with bondholders representing more than 75% of Frontier’s approximately $11 billion in outstanding unsecured bonds (the “Bondholders”). The RSA contemplates agreed-upon terms for a pre-arranged financial restructuring plan (the “Plan”) that leaves unimpaired all general unsecured creditors and holders of secured and subsidiary debt. Under the RSA, the Bondholders have, subject to certain terms and conditions, agreed to support implementation of a Plan that is expected to reduce the Company’s debt by more than $10 billion and provide significant financial flexibility to support continued investment in its long-term growth.