Frontier Communications Corp. will forgo coupon payments due March 15 as it prepares to file for bankruptcy with a plan that cuts its debt and hands control of the company to existing creditors, according to people with knowledge of the plans.
A Frontier bankruptcy would rank as one of the biggest telecom reorganizations since Worldcom Inc. in 2002. Frontier is holding discussions this week with prospective lenders to negotiate the terms of a so-called debtor-in-possession loan, which would provide the liquidity to support the company’s restructuring, said the people, who asked not to be identified discussing the private deal.
