‘Frontier Communications’ is to pay $10M to resolve its bankruptcy
Frontier Communications is to spend $10 million to settle its $60 million front-end communicating artery lawsuit and will pay back all the debt it incurred in connection with the alleged breach, according to a regulatory filing filed Friday.
The company filed for Chapter 11 bankruptcy protection earlier this month and agreed to pay the full $60m of the debt.
Frontier Communications had been seeking $50 million in debt relief for the period from December 2016 to March 2017.
It was previously ordered to pay out $70 million in bankruptcy court in November 2018.
In a separate filing, Frontier also agreed to settle an unrelated class-action lawsuit for $7.5 million.
The bankruptcy filing does not name a target date, but Frontier says it will have a better idea of the financial implications of the pending lawsuit as it proceeds through the court process.
The company said it would seek to sell assets and merge with another entity, which could affect the timing of the next bankruptcy filing.
“We will be making decisions with respect to the future of the company,” Frontier Communications Chairman and CEO Jon Corzine wrote in the filing.
“The filing will give us a better understanding of the impact of the lawsuit, and we will be in a better position to determine how to best manage future debt and fund our operations.”