WS’s Hail Mary debt exchange offer/begging for someobe dumber than their current investors to take them up on another variant of the “I’d gladly pay you for two hamburgers tomorrow if you pay for this hamburger today” plan has been gracious extended again by WS, this time they promise to pay back 10% interest on the 7% they owe instead of 9% from their previous offer. Aside from the obvious 100 percent of nothing is still nothing logical continuation argument, if someone where dumb enough to say yes to this, the new interest each year (which WS is struggling to pay as it is) would be staggering on and didn’t they just say they were dumping customers soon?
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Yes lets give TT more money while the rest of us work with antiquated a-- systems that dont work or dont work well and waste ALOT of company time waiting for a system to work or make a change. Dont forget when they do an "elevate" it always screws more up than it fixes. But dont take too long to do your job or you will be penalized. TT deserves his bonus to sit in his office and laugh like a jackass because he knows hes bankrupting the company but will leave with that golden parachute while the rest of us will be in the unemployment line. Can anyone figure out morale is so dam low???
He got a huge raise last year too, like over 20% increase, something like 5 mil a year now. So yeah they do reward for just what
You said- I have no clue what metric HE is hitting to get that while the rest of us are told there is no money for merit increases, corporate travel, etc oh and that they have to let more people go. They have money for that a$$hat though
Man, I’d love to be a CEO. Really all you have to do is make a bunch of money and see how fast you can run a company into the ground. I’ll do it far cheaper, maybe not faster but definitely cheaper than Tony Thomas. Call me, I’ll beat his price
I don't think they really care about the rates or associated fees. The only one that wins is the bankers behind the bonds. My guess is that they refinance then file for bankruptcy. Sell off assets for cash and lay most employees off. Out of bankruptcy they will have the new windstream.
Yes this futher highlights their desperation at this point for capital. The next few months will be brutal. Prepare for perhaps 25-30% workforce reduction.
They didn’t just extend, they changed the terms as well.
The amendment of the 2020 Exchange Offer (i) extends the Early Tender Date and the Expiration Date to 11:59 p.m., New York City time, on July 26, 2018, (ii) increases the interest rate on the New 2024 Notes from 9.375% to 10.500% and makes corresponding changes to the optional redemption prices for the New 2024 Notes and (iii) revises the terms of the New 2024 Notes to provide that certain redemption premiums shall be payable in the event the New 2024 Notes are accelerated or otherwise become due prior to their stated maturity date, including as a result of certain bankruptcy events with respect to the Issuers and certain of their subsidiaries. A
Bond holders are more hesitant to exchange the bonds because if they did enter bankruptcy they would be in a better position as they have the more mature debt. This smells Doom for Windstream more then anything as the ability to kick the can down the road has been this companies business policy snice 2013...
Conspiracy theory time
Or it could be the case that the bond holders want to force a bankruptcy so they could gain control of the company in a 51/49 debt holders/stock holders split to satisfy the value of outstanding debt. Forcing Windstream to satisfy the matureing bonds will force us into bankruptcy, we don't have the cash flow to pay the interest let alone the face value of the bonds... Some vulture capaitialists have us by the huzbas. I wonder who it is....