Windstream Dip Credit Agreement

“After a full review of our options, including an appeal, the Board of Directors and management team have determined that the voluntary filing of Chapter 11 protection is a necessary step to consider the financial impact of Justice Furman`s decision and the impact on consumers and businesses in the states in which we operate,” Thomas said. “This proactive step will ensure Windstream has access to the capital and resources we need to continue to benefit from strong operational momentum while having constructive discussions with our creditors on the terms of a consensual reorganization plan. We have acted decisively to ensure Windstream`s long-term financial stability, and we are confident that once the reorganization process is complete, we will be in an even better position to invest in our business, expand our speed and capabilities for our customers, and be competitive over the long term. The result of Justice Furman`s decision was that there had been a breach in the relevant work that had not been cured or annulled. The acceleration of outstanding obligations under such a de-de-deur resulted in a cross-default under the commitments governing Windstream`s other series of secured and unsecured notes. In addition, the decision resulted in a cross-default under the loan agreement, which governs Windstream`s secured maturities and revolving credit obligations. As already on the 15th. Announced in February 2019, Justice Furman ruled that the 2015 spin-off of certain telecommunications network assets by Windstream Services, LLC into a real estate investment trust (REIT) violated its agreements with bondholders. The decision arose out of disputes between Aurelius Capital Management (“Aurelius”) and the U.S. Bank National Association that the spin-off was invalid under these agreements.

“Windstream disagrees with Justice Furman`s decision,” said Tony Thomas, President and CEO of Windstream. “The Company believes that Aurelius engaged in predatory market manipulation to promote its own financial position through credit default swaps at the expense of several thousand shareholders, lenders, employees, customers, suppliers and business partners. Windstream stands by its decision to defend itself and try to block Aurelius` tactics in court. The time is long gone for regulators to carefully consider the impact of an unregulated market for credit default swaps. “I would like to express my gratitude for the continued leadership of the entire Windstream team, as well as for the loyalty and patience of our customers, suppliers, distributors and other stakeholders,” Continued Thomas. “With court approval, we will continue to pay our employees, maintain our relationships with our suppliers and business partners, and serve our customers as usual. We remain committed to providing critical voice and data services and ensuring that customers get the most out of the transition to next-generation technology solutions and high-end broadband services. Against a judge`s decision against the company in a dispute with bondholders is a Challenge Windstream Holdings, Inc.

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