Deals
Windstream Prepares Bankruptcy After Losing Default Case
- Court loss on spinoff raises threat of cross-default claims
- Protection from creditors might be needed amid cash crunch
Photographer: Simon Dawson/Bloomberg
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Windstream Holdings Inc. is preparing to file for bankruptcy, according to people with knowledge of the plans, after a court sided with claims by Aurelius Capital Management that the rural telecom company defaulted on its debt.
A filing seeking protection from creditors could come as early as today, according to the people, who asked not to be named discussing private negotiations. The shares fell as much as 32 percent before they were halted for pending news. The cost to protect against a default by Windstream, which has about $5.8 billion of outstanding bonds and loans, jumped to a record.