Theres going to be a bunch of new C level names when we come out of bankruptcy, right? They cant have any investor (or employee) confidence restored without doing this IMHO.
This is about the only thing I hold on to.
Maybe it will be a new C level with a new BoD and stock symbol too. Anything will do.
The brilliant part of the uniti spin off is its a golden parachute for high level execs. They will just slide right over
"Or problems with network obsolescence and maintenance. You want the UCC to have a fundamentally realistic picture of the company’s current status."
This will determine how debt much creditors write off (in exchange for stock) and how much they leave the company to repay. They'll for sure want as much debt and as little stock as possible. At the same time, they don't want a second bankruptcy in a few years because they overloaded the company.
If there's a backlog of money to be spent on maintenance and modern equipment, the creditors and consultants need to know it.
If the current operating results are based on only investing in what's needed to keep the network up for a few more months to reach some short-term goal – they need to know it.
I’m not a Union guy. Im not even sure I care for unions, however:
The Union is on the Unsecured Creditors Committee. I think an AFL-CIO attorney is the point person for this; I suspect he/she is a bankruptcy specialist. I encourage Union members and local leaders to make sure there’s a good flow of solid operational information going up to the top and then over to the attorney. I don’t mean generic anti-management kvetching but solid stuff the attorney can share with fellow UCC members. Stuff like the phony new account info that others have alleged here. Or problems with network obsolescence and maintenance. You want the UCC to have a fundamentally realistic picture of the company’s current status.
If you see any of the various consultants coming through, you want them to be well-informed and grounded in reality.
_”It's piss poor for morale that there isn't new leadership yet”_
For now, the creditors are probably looking for stability and continuity. Also, they have limited leverage (for now), legally, since the current management, as “debtor-in-possession”, gets the first crack at submitting a plan of reorganization.
As a practical matter, though, the company is usually consulting with the creditors as they’re putting it together.
The different creditor groups also are going to be talking to each other to reach their own positions, and maybe even agreement, as to what they want the repayment terms to be for their class of debtor.
A hedge fund, Elliot Management, has bought up a lot of debt and bonds in several different classes of debt. They will have an outsized role in all of this. They do not have a reputation as patient people.
Where am I going with this? I expect as all these parties talk, it’s going to become apparent that the debtors are going to want new blood and some human sacrifices if the Windstream board wants them to sign off on Windstream’s plan of reorganization. The question will be whether they expect it before they sign off or when Windstream exits bankruptcy.
You want these players to be well-informed as to the real operational status of the company
There's danger on the employment side, too. It's piss poor for morale that there isn't new leadership yet
Probably the best post here I've seen. Agree 100%. It's beyond obvious the current leadership made numerous mistakes and are stringing things along for now. Cannot keep them post-bankruptcy unless the market somehow, someway accepts all of this was just a simple misunderstanding. Also agree how future leaders will view things. Won't be easy but should clear up quickly once they are in place.
The creditors will own the company. My guess is they'll just pick a new CEO and maybe one or two other execs. I don't think they want to get into the details of picking many more people than that.
The remaining execs from the previous days will still have their jobs for awhile. Then as the new people get their feet on the ground, they'll bring in their own new people. I suspect most of the remaining executives will go.
It'll be messy. A lot will change quickly once the new team gets on a roll.
The new crew will have a culture of "the old group got it wrong – what do they know?"
Some existing employees that are actually good will be canned. Some of the new bosses will be jerks or incompetents.
The new management may also look at some of the Rube Goldberged network stuff there and say, "don't do it that way - that's stupid". They would be right ... except ... somebody had to set it up that way as a workaround for all the things already held together with chewing gum and baling wire.
That said, there's an old saying that when you're in trouble, a good-enough plan executed quickly and violently is better than an excellent plan executed slowly.
There will be new directors on the board of directors. The new owners may keep several of the incumbents for continuity's sake.
Let's hope: