Uniti closes $2.25B in refinancing a few days ago. Their stock rose 20% over the past 2 days.
They accelerated their court date and our Chapter 11 to the end of April.
Prepare for a crash landing in the following weeks.
7 replies (most recent on top)
Uniti and Win are the same , no matter what happens, these crooks (Gundermans and LR 5 ) will make out with millions. Keep getting no raises and pay out the a$$ for health insurance while these crooks are benefiting from you.
Windstream needs lower rent payments. I’m not sure if Uniti can afford to give it to them.
Uniti and Windstream execs are on the same side. There will be a settlement
There will be a settlement, The Little Rock 5 can't risk perjuring themselves in court where they actually have to tell the truth. 1st it was a lease when they spun off Uniti, now it's not. All part of the game, all the delays in this trial was to line their pockets with more money.
I wouldn't pay much attention to WINMQ prices. That stock is officially worthless. The only people who trade it are "boiler room" operators manipulating the price up and down a few pennies and scamming the hapless.
Like Confederate money but without the collector's value.
The question is will the unsecured creditors get much? The value of their debt just went up some – it looks like folks expect they'll get 15¢ on the dollar.
https://finra-markets.morningstar.com/BondCenter/BondDetail.jsp?ticker=C592165&symbol=WIN3982620
Unsecureds would first have to get their full $1 on the dollar for WINMQ to then actually have real value. To do this, somebody would have to conjure up >1 billion.
Even if the Uniti lease is overturned, WINMQ owners come up empty. Uniti would become another unsecured creditor with a huge claim.
The cleansing materials should be interesting. See the other thread with the seeking alpha link; it in turn has links to those filings.
Uniti's court date is in March not April
Their refinancing was to get rid of a clause that would have allowed bondholders to put Uniti into default if this Windstream matter wasn't cleaned up soon. Most bondholders wouldn't want this to happen (they'd lose their investment) but I've heard Elliott had bought bonds and was ready to do this:
• to put blackmail Uniti into settling on favorable terms (and enhance Elliott's big Windstream investment)
• to potentially make a bunch of money like Aurelius did – take out a lot of insurance against the bonds defaulting (using "credit default swaps"), invest a much smaller amount in actual bonds, trigger a default and cash in the default swaps. Kind of like burning down a house for the insurance money but legal.
The new bonds don't have the same dangerous wording; Uniti used the proceeds to buy up and retire the dangerous bonds.
The stock probably went up because of this. Or else somebody has insider info about the Windstream negotiations.
Sounds to me like they are going to work things out. When this information was released there was a 20% drop in WINMQ today.
Windstream Holdings (OTCPK:WINMQ) is releasing certain cleansing materials tied to confidentiality agreements it entered into with Uniti Group (NASDAQ:UNIT) and other NDA parties.
That comes as mediation between Windstream and Uniti has intensified, according to Windstream lawyers, and "the pace of those discussions has accelerated. The issues have been very substantially narrowed."
Lawyers say they're working around the clock ahead of a March 2 trial start; Uniti had disclosed revised terms that moved closer to Windstream's stance, boosting a cash payment from Uniti to Windstream and selling almost 20% of its outstanding shares.