“After a thorough review of our options, including a complaint, the Board of Directors and the management team have found that the filing of Chapter 11 voluntary protection is a necessary step in addressing the financial impact of Judge Furman`s decision and the impact on consumers and businesses in the states where we operate,” said Thomas. “This proactive approach will provide Windstream with access to the capital and resources we need to continue to build on strong operational momentum as we enter into constructive discussions with our creditors on the terms of a consensual turnaround plan. We have acted decisively to ensure Windstream`s long-term financial stability and are confident that once the reorganization process is complete, we will be even better able to invest in our business, increase our speed and skills for our customers and compete for the long term. “Windstream categorically challenges Judge Furman`s decision,” said Tony Thomas, Windstream`s President and CEO. “The company believes that Aurelius has conducted predatory market manipulations to increase its own financial position through credit risk swaps at the expense of thousands of shareholders, lenders, employees, customers, sellers and business partners. Windstream supports its decision to defend itself and block Aurelius` tactics in court. The time has come for regulators to carefully consider the effects of an unregulated position in the credit risk swap market. Furman J.`s decision resulted in a delayed event occurring after the corresponding move,, which was not cured or cancelled. The acceleration of the outstanding commitments under this inviolabilization has resulted in a cross-break between the amounts that justify Windstream`s other set of secured and unsecured obligations. In addition, the decision led to a cross-default under the credit agreement that regulated Windstream`s secured term and revolving loan obligations. As announced on February 15, 2019, Furman J.
ruled that Windstream Services, LLC`s 2015 split of certain telecommunications networks into a real estate investment trust (REIT) was contrary to its agreements with bondholders.