Wilmington Savings Fund Society, FSB (the “Second Lien Notes Trustee”), as successor Indenture Trustee and Collateral Agent for the 8.500% Second Lien Secured Notes due 2026 (the “Second Lien Notes”), submitted an opposition to the Third Amended Joint Plan of Reorganization of Frontier Communications Corporation and its Debtor Affiliates.
The Second Lien Notes Trustee asserts that:
* On its face, the Plan is unconfirmable as a matter of law. The Debtors are contractually required under the Second Lien Notes Indenture to pay default interest on the Second Lien Notes between the Petition Date and the Effective Date.
* They remain obligated under the Second Lien Notes Indenture to pay the applicable make-whole premium on the Second Lien Notes in the event the Debtors elect the cash-out option, given the fact that the Debtors have retained the option to cash-out the Second Lien Notes.
* The First Lien Ad Hoc Committee’s arguments are based upon a misreading of the Intercreditor Agreement. However, if this argument were accepted, the Second Lien Notes would be further impaired by the Plan, thereby making it further unconfirmable as a matter of law.
The Second Lien Notes Trustee requests that the Court deny confirmation of the Plan unless the Debtors remedy defects in the Plan.
A full-text copy of the Second Lien Notes Trustee’s objection dated July 31, 2020, is available at https://tinyurl.com/y2fw2k8y from PacerMonitor.com at no charge.
Counsel for Wilmington Savings Fund:
RIKER, DANZIG, SCHERER, HYLAND & PERRETTI LLP
Joseph L. Schwartz (admitted pro hac vice)
Curtis M. Plaza
Tara J. Schellhorn
Tod S. Chasin
Headquarters Plaza, One Speedwell Avenue
Morristown, New Jersey 07962-1981
Tel: (973) 538-0800
– and –
500 Fifth Avenue, 49th Floor
New York, New York 10110
Tel: (212) 302-6574
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.
The 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.