Deals
Windstream's Downfall Revives Debate Over Manufactured Defaults
- It says Aurelius manipulated market; Aurelius says ‘nonsense’
- Bankruptcy also could bring scrutiny to Uniti’s lease
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Windstream Holdings Inc.’s downfall could bring financial chaos to the rural phone company, enrich Aurelius Capital Management LP by about $310 million and revive debate about whether some debt investors are making money by unfairly disrupting companies, credit markets and consumers.
The provider of telecom services filed for Chapter 11 bankruptcy Monday after losing a court battle with Aurelius, the New York hedge fund, over whether Windstream defaulted on its bonds by spinning off Uniti Group Inc. in 2015. The filing also blurs the status of Uniti, which owns the network that Windstream uses to serve 1.4 million consumers and small businesses in 18 states and counts Windstream as its biggest customer.