Deals
Frontier has Options to Avoid Bankruptcy, Aurelius Says
- Hedge fund proposes debt exchange, amending lien convenants
- Aurelius says there’s ‘no defensible basis’ for Chapter 11
Photographer: Andrew Harrer/Bloomberg
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Aurelius Capital Management LP is calling for Frontier Communications Corp. to pursue an out-of-court debt exchange and says there’s no “defensible basis” for the company to file for Chapter 11 bankruptcy before trying its proposal. Frontier’s stock and bonds rose.
Mark Brodsky’s hedge fund holds Frontier shares, a “substantial amount” of some Frontier notes, and a long position in Frontier’s debts through credit default swaps, according to a June 19 letter to Frontier’s board. The debt holdings include so-called non-CTF unsecured bonds due in 2022 and 2023. Aurelius isn’t a member of any ad hoc bondholder group, according to the letter, which was signed by Managing Director Dennis Prieto.