Frontier Communications  - The Long Journey Into The Insolvency Zone

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About: Frontier Communications Corporation (FTR)
by: Gary Chodes
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Summary

Frontier sits on massive $17.5 Billion legacy debt Load.

In June S&P downgraded the bulk of Frontier's debt to CCC with a negative outlook.

The majority of Frontier unsecured debt trades at 45 to 47 cents/dollar (as of Dec 13.2019).

Creditors face an existential threat in 2022 with $2.7 billion coming due.

My Conclusion:Unsecured Note holders will be lucky to get 7 cents on the dollar; SeniorSecured holders 24 cents on the dollar.

Situation Analysis

The New Board Brings Unneeded Entanglements

The independent directors that now make up Frontier Communication's board - and their compatriots at restructuring boutique M-III Partners - are currently involvement in perhaps a dozen