Technology Stocks

Windstream Holdings Inc. (NASDAQ:WIN) Could File For Bankrupcy By March With Upgrading Of Its Broadband Speed Ahead Of Schedule

Windstream Holdings Inc. (NASDAQ:WIN) slumped at the start of last week, and its stock has been on the decline since. In the previous trading session, the company lost 46.89% to close the day at $0.45 following analyst projection that the company may seek bankruptcy protection by mid-march after it lost court a legal battle with Aurelius Capital Management. The developments come at the back of the company announcing that it was ahead of schedule in completing the Kinetic Internet Service initiative of 100mbps.

Windstream to file for Bankruptcy after losing to Aurelius

According to Citibank analysts Tony Deng and David Phipps, following the loss of a legal battle with Aurelius Capital Management the company will file for bankruptcy by mid next month. The judgment issued on February 15 in favor of Aurelius will potentially trigger defaults on Windstream’s debt by March.

In the suit, the lost Windstream was being sued for having defaulted on debt following the spinning of its fiber-optic business. The ruling indicates that the company should pay the bondholder who is Aurelius over $310 million in principle and interest for the same. The looming bankruptcy of Windstream is likely to last over one year.

100mbps speed upgrade ahead of schedule

Regardless of the developments, the company has indicated that over 34% of households in their 18-state footprint are now eligible for an upgrade. Following the announcement of the initiative early in the year, the company had anticipated that only 30% could be eligible by March. However, they have been ahead of schedule completing the work by mid-February. Windstream has estimated that within the first half of the year they will have attained 40% of households who are eligible for 1000 Mbps upgrade.

Speaking on the progress, Jeff Small the President of Windstream stated that the company is passionate about delivering quality internet speeds to more businesses and families across the country. He added that the company had taken the necessary steps to accelerate the deployment process of its broadband which is good news for most of the residents in rural communities.

Leave a Comment

Your email address will not be published.