Thread regarding Windstream Corp. layoffs

Wall Street Journal article:

“Windstream Creditors Want Uniti Rent Stopped”

https://www.wsj.com/amp/articles/windstream-creditors-want-uniti-rent-stopped-11561760927

“…The trustees said the lease, which has cost Windstream $110 million since the bankruptcy began, is really a loan in disguise and that such payments can’t continue during chapter 11 …”

“…Earlier this month, Windstream asked for and received more time to decide whether to keep or reject the lease. Windstream’s chief executive has said the lease is “significantly above-market” given the declining value of copper communications facilities…”

It was a deal that was made while TT was the CEO at CS&L (REIT). I can’t believe anyone is letting this slide Tony got paid by both sides. Who’s idea was the REIT?

Good explanation of bond indentures and indenture trustees. Brief, simple:

https://www.investopedia.com/terms/t/trust_indenture.asp

"I heard from Tony Thomas that the motivational bonuses are great in chapter 11."

Kenny Gunderman

They will be the next domino to fall because of WIN. I'll bet we don't honor our contract and renew for 30 cents on the dollar like tony wanted. UNITI's revenue drops by 50% over the next few quarters and they fill ch 11 sometime in 2020

Should’ve noted: also involves a second indenture trustee, UMB Bank, not just US Bank.

US Bank also filed a motion requesting permission to exceed the court’s requested 40-page limit on legal memoranda.

http://www.kccllc.net/windstream/document/1922312190628000000000042

These were once kids that enjoyed writing term papers?

Uniti stock is down but only by 3.6%. Some combination of:

1. Some degree of pain was already baked into uniti’s share price so this is no surprise and/or

2. Investors don’t take US Bank’s chances too seriously