The ad hoc committee of certain unaffiliated holder, of Frontier Communications Corporation, et al.’s outstanding first lien debt objects to the Debtors’ motion seeking approval of the disclosure statement.
The First Lien Committee points out that the Disclosure Statement should not be approved because the Plan it describes is patently unconfirmable.
The First Lien Committee complains that the term loan claims and the first lien notes claims cannot be reinstated.
The First Lien Committee asserts that the Plan deprives the first lien lenders of their contractual right to default interest.
According to First Lien Committee, the Plan impairs the first lien lenders’ rights with respect to the PNW sale proceeds.
The First Lien Committee points out that the Plan violates the pro rata sharing provisions of the credit agreement.
The First Lien Committee complains that the Plan violates the Debtors’ obligations under the intercreditor agreement.
The First Lien Committee asserts that the Plan triggers a change in control under the credit agreement.
According to First Lien Committee, the alternative proposed treatment of the term loan claims and first lien notes claims also violates the bankruptcy code.
The First Lien Committee points out that the Plan impermissibly seeks to pay the unsecured noteholder groups’ professional fees.
The First Lien Committee complains that the Disclosure Statement fails to provide for the solicitation of votes from the term loan lenders and the first lien noteholders whose claims are impaired under the plan.
The First Lien Committee asserts that the Disclosure Statement fails to provide adequate information.
Counsel to the First Lien Committee:
Brian S. Hermann
Julia Tarver Mason Wood
Gregory F. Laufer
Kyle J. Kimpler
PAUL, WEISS, RIFKIND, WHARTON & GARRISON LLP
1285 Avenue of the Americas
New York, New York 10019-6064
About Frontier Communications
Frontier Communications Corporation (NASDAQ: FTR) offers a variety of services to residential and business customers over its fiber-optic and copper networks in 29 states, including video, high-speed internet, advanced voice, and Frontier Secure digital protection solutions.
Frontier Communications Corporation and 103 related entities sought Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 20-22476) on April 14, 2020. Judge Robert D. Drain oversees the cases.
Debtors tapped Kirkland & Ellis LLP as legal counsel; Evercore as financial advisor; and FTI Consulting, Inc., as restructuring advisor. Prime Clerk is the claims agent, maintaining the page http://www.frontierrestructuring.com/ and https://cases.primeclerk.com/ftr.
The U.S. Trustee for Region 2 appointed a committee to represent unsecured creditors in Debtors’ Chapter 11 cases. The committee tapped Kramer Levin Naftalis & Frankel LLP as its counsel; Alvarez & Marsal North America, LLC as financial advisor; and UBS Securities LLC as investment banker.