Windstream (NASDAQ:WIN) filed for bankruptcy on Monday, sending WIN stock sinking late in the morning.
The Little Rock, Ar.-based telephone services provider’s move is likely to affect its investors. Here are seven things shareholders should know:
- Windstream filed for Chapter 11 bankruptcy with the goal of addressing debt issues.
- The move was “accelerated” after a judge made a ruling against a subsidiary of the company in which Windstream battled Aurelius Capital Management in court in relation to whether or not it defaulted on the latter’s bonds four years ago by spinning off Uniti Group. The judge used the court-supervised process to speed up debt maturities.
- Company CEO and president Tony Thomas said that the move will put Windstream in a position to garner access to capital and resources, which it will use to propel its “operational momentum.”
- Meanwhile, the business will take part in “constructive discussions” with its creditors in order to reach an agreement regarding how it plans to reorganize itself, per Thomas.
- “We acted decisively to secure the long-term financial stability of Windstream, and we are confident that, upon completion of the reorganization process, we will be even better positioned to invest in our business, expand our speed and capabilities for our customers and compete for the long term.”
- The Windstream boss added that the bankruptcy will allow the company to continue offering service to its customers.
- WIN stock was sinking 46.7% by day’s end Monday.
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