Thread regarding Windstream Corp. layoffs

Windstream files motion opposing creditors' attempt to get Uniti lease invalidated

Several days ago, the indenture trustees for some Windstream bonds filed a motion to invalidate the Uniti lease - see @ZMzV89I

Yesterday (7/3), Windstream filed a preliminary motion objecting to this move. They said they were in negotiations with Uniti and this would muddy the water. They also said this went against the normal bankruptcy process since at this stage in the process, as "debtor-in-possession", it was Windstream's prerogative as to which leases and contracts to reject, not the creditors.

http://www.kccllc.net/windstream/document/1922312190702000000000145

Windstream also says:

"... in the absence of a consensual resolution with Uniti, the Debtors fully intend to assert recharacterization and any other colorable claims and causes of action against Uniti."

In other words, Windstream itself may try to get the lease thrown out but not until they see if they can first get a deal with Uniti.

I wonder if this isn't really part of a tacit good-cop / bad-cop approach by the creditors and Windstream to gang up on Uniti. Uniti knows that Windstream would be cutting its own throat to cancel the lease. But they can't say that about the secured creditors, so the indenture trustees' motion is a more credible threat and more likely to make them cut a deal -- I think. (I'm not a lawyer and this is complicated).

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| 1251 views | | 4 replies (last July 9, 2019) | Reply
Post ID: @OP+ZScSgjJ

4 replies (most recent on top)

Today (7/8), the senior secured creditors joined Windstream and the junior secured creditors in asking the judge to put aside the indenture trustees’ motion to invalidate the Uniti lease:

http://www.kccllc.net/windstream/document/1922312190708000000000110

Like the others, they didn’t say that they supported the lease as is.

They just said that Windstream and Uniti should continue negotiating possible revisions for now.

If those don’t pan out, only then they would support “recharacterizing” the lease.

Uniti’s going to have to give some - the question is how much - a little or a lot?

There are so many legal conflicting theories and interpretations it’s hard to say. There’s the original deal and its documents, the laws governing leases and debts, the motions filed and the decision rendered in the Aurelius lawsuit and now the special laws governing bankruptcy.

Uniti probably has a stronger position than Windstream but they’re gambling their company (just like Windstream did in the Aurelius case).

If these 2 companies can’t agree on a new lease, this will turn into the legal sh-- show of the year. The 2 corporate carcasses will feed flocks of hungry lawyers for months. It’ll be a disaster for the rest of us.

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Post ID: @5cmx+ZScSgjJ

Better link

https://m.youtube.com/watch?v=QzOs4PX7UMs

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Post ID: @3jzz+ZScSgjJ

https://www.youtube.com/watch?v=1GNR12vGALI

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Post ID: @nwp+ZScSgjJ

But wait there's more:

The junior secured creditors filed a motion the next day supporting Windstream and the lease for now, pending further negotiation between Uniti and Windstream.

("junior secured creditors" - they hold the equivalent of a second mortgage on Windstream assets)

http://www.kccllc.net/windstream/document/1922312190703000000000059

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Post ID: @lxf+ZScSgjJ

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