UNIT - Dodging The Windstream Default Fallout
Shrinking revenue and crushing debt have steadily pushed Windstream Holdings (NYSE: WIN) toward bankruptcy for months. Now a Manhattan federal court ruling will likely shove the wireline phone company over the edge.
Unless it can successfully appeal the decision, Windstream will have to pay $310 million to hedge fund Aurelius Capital Management LP. That’s what the judge ruled is owed for a technical default, which the company allegedly triggered by spinning off communications infrastructure assets as Uniti Group (NSDQ: UNIT) in early 2015.
The news has shaved another two-thirds off Windstream’s share price,