Has anyone heard Elliot Management is rumored to be taking over?? I mean something has to give here. At this point everyone is just sitting idle waiting for the shoe to drop. Sales reps aren't selling. Morale is at an all-time low nobody gives a c-ap how much longer can we operate like this as a compan?And can somebody please explain how the LR 5 were still in charge of this company the last 12 months somebody Please explain this?? No one pays attention to what they have to say because no one has respect for them. No raises this year but yet the bonus to the top 5. God help us all.
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Winterstate is the high speed transport backbone. Nice equipment, Cienna. But the fiber paths were designed without redundancy in some spots, fiber cuts have dropped it. And they put all the equipment in these little rooms in some CO’s for security purposes. But that tiny room is feed by one hvac unit, so that hvac unit fails and that room is 105 degrees in 30min. Poorly engineered, but can be easily corrected.
Portions of Winterstate are leased. Other portions are owned by us.
In case you didn’t already know Winterstate is a leased long haul network.
I agree with all the possibilities. In the near future the DIP money will be gone and decisions will be made on how to move forward profitably. Windstream as a whole isn’t profitable and only pieces will emerge while others will be sold. It’s going to be a decision Elliott is invoked with.
What is Winterstate equipment?
I could see them shutting down the TDM network and therefore the CLEC side of the business with the exception of the sites that have WinterState equipment onsite and some key dwdm sites that carry ILEC traffic. People on the CLEC should be sweating
Could see Elliott stripping down the business and focusing on government subsidized rural broadband, where they can pretty much get a guaranteed rate of return they can live with. Of course, this means getting rid of the current mo–nic executive team and associated delusions of becoming a software powerhouse. There would be a sizable workforce reduction. Only way it would work. After a few years, if everything goes as planned, they can then sell a profitable business back to another telecom company.
Fresh news: Elliott has a amassed a 2.5 billion stake in SoftBank, Sprint’s owner. They want changes.
https://www.wsj.com/articles/elliott-management-builds-more-than-2-5-billion-stake-in-softbank-11581015340
Elliott Management is Windstream’s biggest creditor. They have continued to buy Windstream’s distressed bonds at a deep discount.
When chapter 11 ends, creditors will get a mix of bonds and stock in the new company (the old stock will be cancelled). Elliott won’t own the company but they’ll have the biggest stake and the most powerful seat at the table and probably several of their people on the Board of Directors.
Elliott specializes in buying stakes in distressed companies, getting them fixed up and then selling for a profit.
They’ll probably find several hard-charging, hard nosed telecom execs that they like for Windstream, then recommend them to the board for final approval.
Those people will do the fixing up. Hopefully. Elliott’s track record is good but not perfect.
I believe Elliott will probably take over some time in Q2, after the Uniti lawsuit is over (if there is anything left to take over.)
The LR 5 are still around due to the Uniti lawsuit. They need to give testimony that reflects the testimony given in the Aurelius suit.
Sales aren’t being made, the company loses $40M+/month but the sales team is headed to Jamaica on the company jet with TT and his wife. Congrats on sinking the ship!
Whatever corporate may be feeding you, the facts are Windstream as we know it is losing lots of money. The people keeping this ship floating will be making changes and kicking the can down the road will come to an end.
If you have a good salary and have refused to look elsewhere. You’re probably going to pay the price shortly.