Obtains Interim Approval to Access up to $400 Million in DIP Financing
LITTLE ROCK, Ark., Feb. 26, 2019 (GLOBE NEWSWIRE) -- Windstream Holdings, Inc. (WIN) (the “Company”) today announced that the Company has received approvals from the U.S. Bankruptcy Court for the Southern District of New York (the “Court”) for the “First Day” motions related to the voluntary Chapter 11 petitions filed on February 25, 2019.
Notably, the Court granted Windstream interim approval to access up to $400 million of its $1 billion in debtor-in-possession (“DIP”) financing. This financing, combined with access to the cash generated by the Company’s ongoing operations, is available to meet Windstream’s operational needs and continue operating its business as usual.
“We are pleased to have received approval of our First Day motions, which will enable Windstream to continue normal business operations as we continue paying our employees, maintaining our relationships with our vendors and business partners and serving our customers as usual,” said Tony Thomas, president and chief executive officer. “Our focus going forward is on serving our customers and maintaining the strong operational momentum we are seeing across our business. We appreciate the prompt action by the Court in approving our First Day motions.”
In addition to interim approval to access up to $400 million of the $1 billion in DIP financing, Windstream received Court approval to, among other things, operate in the normal course of business without interruption or disruption to its relationships with its customers, vendors, channel partners and employees. Windstream will pay vendors in full for all goods received and services provided to the Company after the filing date, February 25, 2019.
Additional resources for customers, vendors and other stakeholders, and other information on Windstream’s filings, can be accessed by visiting Windstream’s restructuring website at www.windstreamrestructuring.com. Court filings and other documents related to the Chapter 11 process are available on a separate website administered by Windstream’s claims agent, Kurtzman Carson Consultants LLC (“KCC”) at http://www.kccllc.net/windstream. Information is also available by calling 877-759-8815 (toll-free in the U.S.) or +1-424-236-7262 (for parties outside the U.S.).
Kirkland & Ellis LLP is serving as legal counsel, PJT Partners LP is serving as financial adviser and Alvarez & Marsal is serving as restructuring adviser to Windstream.
Windstream Holdings, Inc. (WIN), a FORTUNE 500 company, is a leading provider of advanced network communications and technology solutions. Windstream provides data networking, core transport, security, unified communications and managed services to mid-market, enterprise and wholesale customers across the U.S. The company also offers broadband, entertainment and security services for consumers and small and medium-sized businesses primarily in rural areas in 18 states. Services are delivered over multiple network platforms including a nationwide IP network, our proprietary cloud core architecture and on a local and long-haul fiber network spanning approximately 150,000 miles. Additional information is available at windstream.com or windstreamenterprise.com. Please visit our newsroom at news.windstream.com or follow us on Twitter at @Windstream or @WindstreamBiz.
Cautionary Statements Regarding Forward-Looking Information
Windstream Holdings, Inc. claims the protection of the safe-harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by words or phrases such as “will,” “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “target,” “forecast” and other words and terms of similar meaning. Forward-looking statements are subject to risks and uncertainties that could cause actual future events and results to differ materially from those expressed in the forward-looking statements.
Forward-looking statements include, but are not limited to, risks and uncertainties relating to the Company's Chapter 11 cases (the "Chapter 11 Case"), including but not limited to, the Company's ability to obtain Bankruptcy Court approval with respect to motions in the Chapter 11 Case, the effects of the Chapter 11 Case on the Company and on the interests of various creditors, stockholders and other constituents; Bankruptcy Court rulings in the Chapter 11 Case and the outcome of the Chapter 11 Case in general; the length of time the Company will operate under the Chapter 11 Case; risks associated with third-party motions in the Chapter 11 Case; the potential adverse effects of the Chapter 11 Case on the Company's liquidity or results of operations and increased legal and other professional costs necessary to execute the Company's reorganization; the conditions to which the Company's debtor-in-possession financing is subject and the risk that these conditions may not be satisfied for various reasons, including for reasons outside of the Company's control; uncertainty associated with evaluating and completing any strategic or financial alternative as well as the Company's ability to implement and realize any anticipated benefits associated with any alternative that may be pursued; the impact of any challenge by creditors or other parties to previously completed transactions; risks associated with the impact of regulatory oversight by the Federal Communications Commission and state public utility commissions and the regulations we are subject to in the Chapter 11 Case; the consequences of the acceleration of our debt obligations; trading price and volatility of the Company's common stock and the ability of the Company to remain listed on the Nasdaq Stock Market; and any other statements regarding plans, objectives, expectations and intentions and other statements that are not historical facts.
Forward-looking statements are based on estimates, projections, beliefs, and assumptions that the Company believes are reasonable but are not guarantees of future events, performance or results. Actual future events and results may differ materially from those expressed in these forward-looking statements as a result of a number of important factors. Factors that could cause actual results to differ materially from those contemplated in our forward-looking statements include, among others, factors under “Risk Factors” in Item 1A of the Company’s Annual Report and in subsequent filings with the Securities and Exchange Commission at www.sec.gov. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Chris King, 704-319-1025
David Avery, 501-748-5876