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Frontier, an ISP in 29 States, Plans to File for Bankruptcy

posted by Fnord666 on Tuesday January 21 2020, @09:59AM   
from the routine-bankruptcy dept.

Arthur T Knackerbracket has found the following story:

Frontier Communications is planning to file for bankruptcy within two months, Bloomberg reported last week.

The telco "is asking creditors to help craft a turnaround deal that includes filing for bankruptcy by the middle of March, according to people with knowledge of the matter," Bloomberg wrote.

Frontier CEO Bernie Han and other company executives "met with creditors and advisers Thursday and told them the company wants to negotiate a pre-packaged agreement before $356 million of debt payments come due March 15," the report said. The move would likely involve Chapter 11 bankruptcy to let Frontier "keep operating without interruption of telephone and broadband service to its customers."

Frontier reported having $16.3 billion in long-term debt as of September 30, 2019.

-- submitted from IRC

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Original Submission

• Re:how it happened (Score: 3, Interesting) by FatPhil on Tuesday January 21 2020, @05:27PM

  by FatPhil (863) <{pc-soylent} {at} {asdf.fi}> on Tuesday January 21 2020, @05:27PM (#946420) Homepage

  Paying 10 billion for 5 million new customers can't pay off until they've made a net profit of 2000 from each one? It would take them nearly 10 years just to *turn over* that amount here, so even with a decent profit margin and ZIR, that wasn't going to pay off for many decades.
  
  They went bust because they were shitty businessmen who didn't understand how infrastructural businesses work, and forgot to pay attention to their fundamentals.

  --
  Great minds discuss ideas; average minds discuss events; small minds discuss people; the smallest discuss themselves

  Parent

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