Meet your future bosses (Elliott Management)

Elliott is a private equity fund. They own more Windstream debt than anyone else (they bought much of it at a steep discount). They shake up and restructure troubled companies.

They bought a stake in AT&T in 2019, then sent its board a letter telling them they were doing a poor job and "suggesting" changes.

Here's an article written at the time:
https://www.fiercewireless.com/wireless/elliott-trashes-at-t-management-and-its-execution-wireless

Here's a link to the letter:
https://www.businesswire.com/news/home/20190909005482/en/Elliott-Management-Sends-Letter-Board-Directors-ATT

It's long but clear and worth a 5-minute skim, if for nothing else than the section headings. I'd say it's a harsh but fair and accurate picture of AT&T's problems.

I can imagine the letter they might write for Windstream.

The Elliott people are smart and hard-nosed. As the biggest creditors and biggest future shareholders, they will call the shots on who runs the company going forward.

Comment! It's anonymous!

15 replies (most recent on top)

The brilliant idea to spin off what's now Uniti was the ceo's idea when he was CFO, which got the company into the current mess. However, if he had not done that would Elliot have had this Fire Sale Opportunity? So do they keep him?

Big numbers:
https://news.bloomberglaw.com/bankruptcy-law/elliott-builds-bigger-position-in-first-lien-windstream-debt

The latest filings with the bankruptcy court indicate Elliott has increased its stake in Windstream. See the comments for January 16, 2020 at this seekingalpha.com thread:

https://seekingalpha.com/article/4309571-blood-in-streets-again-14-yield-to-maturity-from-uniti-group-is-back

"Elliot now owns a majority of the debt in every category except for DIP loan and Second Lien notes" http://www.kccllc.net/windstream/document/1922312200115000000000011

and

"Elliott has built a major 1st lien position since the November filing where it owned a paltry 60m of 1sts along with its large 2L and bond holdings, and now owns a massive position across the creditor classes. This move blocks any hope by Windstream’s management of negotiating a reorg deal with the 1sts to freeze out the 2nds and unsecured holders."

"Elliott plays to win and has unlimited resources to ensure they do. Windstream and Uniti should understand they are in a very tough spot as all of the creditor groups are aligned with a common strategy and with firepower."

Uniti's stock and bond prices fell today; I don't know if this is the reason.

I take this to mean that Elliott is even more serious about taking the reins at Windstream after bankruptcy.

It’s hard for the execs at windstream to see it while there in the thick of this, but they surely don’t need all the mid level management salaries. They instituted a planner/dispatch program that really negates the local manager need. Those would be the first positions eliminated by Elliot or any other sharp Exec managerial team.

Upper managment is the cause of windstreams collapse. They need to be let go. I would love to see them loose everything. Just like many former employees that were let go. My manager (MJ) has no clue. Hes good at kissing a55 though

I agree the CLEC side is really underwater. Soo much real estate, antiquated equipment, and IT backoffice. All of these acquisitions were never completed before another took over. It would not surprise me to see a 50% reduction over 2 cuts this year. My guess is that WIN is trying to get out of their obligations not to lay anyone off, They are going to let the creditors do that when they take over.

Not much leadership here. just the people with the big shoes and fat wallets.

Layoffs will cut deeper but be less frequent. CLEC side of the business is in trouble

"Director of engineering with a sociology degree, managers with GEDs, engineers with absolutely zero engineering education."

Yeah, I remember one, BV, who had a friggin Liberal Arts degree and was heading up transport engineering. Nothing wrong with that if you're otherwise respectable in your position, but this dude was friggin terrible. Purely an abrasive a-hole and was probably mad all the time because he didn't actually know anything. Naturally he came from an acquisition. Psychology degrees seemed to be the in thing at WIN management for awhile too, but all those folks are long gone from what I know.

With new management, it'll be the same story. How many demand jobs you work in ETA vs. how much idle time, did you clock in/out on time, did your vehicle idle too much, etc. Elliott, or their chosen people, would be looking at how to reduce operating expenses and increase revenue – much like the current r—d squad.

Director of engineering with a sociology degree, managers with GEDs, engineers with absolutely zero engineering education. I welcome change and/or being laid off. If you have a 4 year STEM degree do not work here. Skill sets and education mean nothing at Windstream but how well you s— up does count!

Meet the new boss / Same as the old boss

Sounds refreshing!

I haven’t been managed by anyone who knew what I did since we broke from alltel. Win is famous for assigning ‘managers’ to departments they have absolutely no background in. Your lips just had to fit.

Any replacement for Uncle Tony is much welcomed.

I was told MOST of the people in a leadership role won't be here at the end of the year.
If you are a staff employee there is a 50/50 shot you will still be around.

Thread regarding Windstream Corp. layoffs

Meet your future bosses (Elliott Management)

15 replies (most recent on top)

Post a reply