Windstream Bankruptcy: The Channel Saga Unfolds

Windstream‘s chapter 11 bankruptcy filing has been the biggest ongoing story of 2019, and the drama’s far from over.

The communications giant says it had no intention of filing for bankruptcy and that it fully expected the U.S. District Court of the Southern District of New York to rule in its favor in its court battle against Aurelius Capital Management, a Windstream bondholder.

However, when the court sided with Aurelius, the writing was on the wall. The court ruled that Aurelius is entitled to a judgment of nearly $310.5 million, plus interest, after July 23, 2018. Meanwhile, Windstream has about $5.8 billion in outstanding bonds and loans.

There’s been a steady stream of developments since the filing, with analysts weighing in on what’s likely taking place behind the scenes. And partners, and employees in anonymous comments, have provided their feedback on how this has or is likely to impact them.

Ovum’s Mike Sapien

Mike Sapien, Ovum’s vice president and chief analyst of enterprise services, tells Channel Partners the process seems to be going as expected and “I have not heard anything to the contrary.”

“[The] chapter 11 process can take many months to years,” he said. “There won’t be any public announcements until Windstream has negotiated with its major creditors and regulators on their exit plan. I suspect it will be many months due to the numerous parties involved including the regulatory agencies involved.”

During its first-quarter 2019 earnings call, Tony Thomas, Windstream’s president and CEO, said the reorganization process continues and “we are pleased with the progress thus far. Windstream will emerge from our current restructuring a healthier and stronger company. More than ever, we are excited about the opportunities that lie ahead.”

Scroll through our gallery below for all of the action that’s happened – including what you might have missed – since Windstream entered chapter 11.