How much are the unsecured creditors likely to recover?

Here's a graph of the value of Windstream's unsecured bonds – they're currently in default and paying no interest:
https://markets.businessinsider.com/bonds/7_750-windstream-holdings-bond-2020-us97381wan48

Click on the tabs that say "1w", "3m" etc to see price graphs for the last week, the last 3 months, etc.

The value is expressed in cents on the dollar vs. the face value (100).

The owners of these particular bonds are in the same boat as all the other unsecured creditors such as vendors. (There are other bonds that are secured by Windstream assets but they are in a different, better boat).

Eventually the unsecured creditors are going to get some mix of stock, cash (probably not) and new bonds.

You can use the price of these unsecured bonds as an approximation of the value the financial markets expect this package will be worth. The value today was about 15 cents. A bondholder who thinks he'll get back more than 15 cents will hold on to his bonds. Someone who's more pessimistic will try to unload them.

You can see where the bonds plunged from about 70¢ to about 15¢ when Windstream filed bankruptcy, then they recovered to almost 30¢. If you look at the 3-month chart, you'll see they've steadily drifted back down to about 15¢.

In other words, unsecured creditors have become more pessimistic since mid-summer.

Uniti's stock has sunk some, too, over the last 3 months, but not as badly and it's recovered a little bit recently:
https://finance.yahoo.com/quote/UNIT

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“ A&M their consultants recommended getting out of assets that are not core to the business.”

What other recommendations has A&M made? Are they widely known within Windstream or among the creditors?

Thanks

I don't think they will liquidate. A&M their consultants recommended getting out of assets that are not core to the business.

I am interested to see in the long term what will be left of the ILEC model.
At some point the wire line business no longer makes sense. The FCC has
some tough decisions in the next 10 years. Fixed wireless makes more sense
in rural ILEC footprint that it does to try and maintain an aging outside plant.

I think WIN much like the banking industry though they were too big too fail.
Guess what? they did and in a big way.

15¢ last week, 11¢ today.

On the plus side, that means the secured creditors will probably come out close to whole – in the long run.

No way I see this company liquidating. Shrinking, yes, but at a minimum, the ILEC operations are going to keep operating under somebody's ownership.

The trend shows that we cannot survive chapter 11 and will most likely liquidate assets sometime in the spring. See previous threads and comments regarding monthly revenue. We lose on average of $40M/month and write down $60M/month. That is not a sustainable business practice, legacy networks, real estate, and products are bleeding us to death. This will have all have to wait until the spring when UNIT and WIN goto court. Once that decision is made they layoffs will begin.

But always keep in mind "We are a software powerhouse"

Who actually cares?

Thread regarding Windstream Corp. layoffs

How much are the unsecured creditors likely to recover?

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