Windstream reports 1Q loss of $2.3 billion amid bankruptcy cloud, executive pay
Summary
Windstream Holdings Inc. on Wednesday (May 15) reported that losses had widened to $2.3 billion in the first quarter as the Arkansas telecom wades its way through federal court-supervised bankruptcy proceedings that have cast a cloud over the company’s operations. Furman’s ruling arose from challenges by Aurelius Capital Management and U.S. Bank National Association that the 2015 deal was invalid under the terms of a debt exchange offer and consent solicitations in respect to senior notes issued by Windstream Services LLC to finance the spinoff of Uniti. ‘OVERVALUED’ In conjunction with the Chapter 11 filing, Citigroup Global Markets Inc. in late February offered Windstream a $1 billion financing package as part of the court’s “first day” approvals. During the conference call with Wall Street analysts and investors, Thomas said the federal court approved the investment grade financing package in mid-April during a series of so-called “second-day” motions. Those results included a $2.3 billion non-cash goodwill impairment charge in the first quarter primarily due to a new lease accounting standard and the filing of the Chapter 11 reorganization case.