Frontier Communications Corporation (OTC: FTRCQ) said Friday the FCC approved the telecom’s Chapter 11 restructuring. Frontier has also received regulatory approval or favorable determinations in 13 states for its required change-in control applications related to its court-supervised restructuring. The 13 states are: Arizona, Georgia, Illinois, Minnesota, Mississippi, Nebraska, Nevada, New York, Ohio, South Carolina, Texas, Utah and Virginia.
Frontier expects to quickly close the transactions contemplated under its previously confirmed reorganization plan and emerge from Chapter 11 in early 2021. Once that happens, the company will have shaved more than $10 billion from its total debt load. Frontier said it plans to move forward with more financial flexibility to support continued investment in an improved customer experience and long-term growth.
“We continue to make important progress in our constructive engagement with regulators across our service territories, and this approval from the FCC marks a major milestone,” said Frontier President/CEO Bernie Han. “We continue to await approval in just four states and are working to expedite those approvals to enable the company to emerge from Chapter 11. Our team remains focused on our transformative strategy to strengthen our financial foundation, improve our operations and enhance our customer experience throughout the U.S.”
“We are pleased by the FCC’s affirmative decision for Frontier,” said USTelecom President/CEO Jonathan Spalter. “More than ever, Frontier serves a vital function in providing essential telecommunications services. This decision is a major step toward successfully completing the company’s restructuring, enabling it to move forward in delivering services to its customers and creating benefits for communities across the U.S.”
The U.S. Bankruptcy Court for the Southern District of New York confirmed Frontier’s reorganization plan this August.