WHITE MOUNTAINS — Frontier Communications Corp. which provide telecom services in 29 states, including in the White Mountains, plans to file for bankruptcy protection, according to a Jan. 16 report by Bloomberg.com.
Frontier is based in Norwalk, Connecticut, and hired a new chief executive officer in December — one Bernie Han. Han reportedly met with creditors and advisors to try to do something about a $356 million debt payment Frontier owes, which becomes due on March 15. That’s a fraction of the reported $17.5 billion debt load the company is carrying, some of which is believed to be in connection with its land-line telephone operation which many customers do not use anymore, according to the report.
A bankruptcy filing under Chapter 11 of the bankruptcy code typically allows a company to continue operating with out interruption, as it reorganizes its affairs. Creditors have reportedly been pressuring Frontier for a restructuring plan.
Javier Mendoza, a spokesman for Frontier, said the company’s goal is improved customer service.
“Frontier’s business and operations are solid and serving our customers remains our top priority. As we have said publicly, Frontier is evaluating its capital structure with an eye to reducing debt and interest expense so as to be able to better serve our customers. Our customers should expect no changes as we remain focused on providing quality communications services,” he stated in an email to the Independent.