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Frontier Communications filed for bankruptcy on April 14, 2020, with plans to pay off more than $10 billion in outstanding debt.
Available in 29 U.S. states, the service provider is one of the largest DSL providers in the country, servicing 2.6 million internet subscribers. Frontier has steadily been losing customers since their 2016 acquisition of Verizon’s wireline business in California, Texas and Florida. Although Frontier has been able to cut over $1 billion in costs, the service provider has been unable to sufficiently bounce back.
What does this mean for Frontier customers?
Following the bankruptcy announcement, Frontier assures current and potential subscribers that their service will not suffer.
“Frontier expects to continue providing quality service to its customers without interruption and work with its business partners as usual throughout the court-supervised process. The Company has sufficient liquidity to meet its ongoing obligations,” the provider said.
Frontier has plans to pay back over $10 billion in a bankruptcy agreement that will give bondholders more equity in the company. The provider has also secured a $460 million loan for “continued investment in its long-term growth.”
The FCC issued a statement further ensuring current Frontier customers will stay connected to 911, voice and broadband services. The agency will also make sure that Frontier puts any federal funds received into the Connect America Fund.