The internet service provider (ISP) known as Frontier Communications Corp., that provides telecom services in 29 states including a heavy market share in Illinois, reportedly met with creditors and advisers last week to to negotiate a debt restructuring deal.
Frontier executives told creditors they want to strike the deal, that may include filing Chapter 11 bankruptcy, before March 15th whenapproximately $356 million in debt payments come due.
Bloomberg reported last week that the company has been in discussion with advisers on solutions to ease the $17.5 billion debt load, that is becoming more burdensome as people stop using land lines.
According to findings in a report by ARS Technica, Frontier has been reducing its staff due to a continuing loss of customers, including a loss of 90,000 residential customers in the last quarter of 2019.
Frontier’s business-customer base reportedly declined from 422,000 to 381,000, from September of 2018 to September of 2019, and during that period, Frontier had 19,132 employees as of September 30, 2019, down from 21,375 one year earlier.
Frontier has warned creditors that a bankruptcy might be inevitable, as cretidtors have have reportedly put pressure on Frontier to restructure it’s debt load.
A representative for Frontier declined to comment to Bloomberg and attempts by ARS Technica to contact Frontier representatives have gone unanswered.
A Chapter 11 bankruptcy filing would allow the company to continue providing uninterrupted service to customers while restructuring their debt load.
What the effect would be on services to customers locally is not clear at this time.