Connecticut-based Frontier Communications on April 14 announced it was voluntarily entering chapter 11 bankruptcy protection after missing an interest payment on unsecured debt in March. Despite this development, Frontier said it would continue providing services to its customer base.
Frontier provides telephone, broadband and television services in 29 states, according to the company.
Between debtor financing and cash on hand, Frontier says it has $1.1 billion in liquidity; the relevant court will allow continued funding of employee wages, health care and other benefits.
Robert Schriesheim of the company’s board of directors said the court’s decision “will allow the business to continue operating, providing important services to our customers without interruption and maintaining our long-standing relationships with our vendors and business partners.”
The U.S. Federal Communication Commission’s Wireline Competition Bureau Chief Kris Monteith called service continuity in light of the ongoing COVID-19 pandemic “essential…As such, I am pleased that Frontier has made clear that consumers will remain connected despite Frontier’s filing of a bankruptcy reorganization plan. As the company undertakes this process, we expect it to comply with all Commission regulatory obligations. We will be vigilant in ensuring both that Frontier’s customers stay connected to vital 911, voice, and broadband services and that Frontier continues to put the federal funds it receives through the Connect America Fund and other universal service programs to work for the American people.”
