Frontier Communications Emerges from Chapter 11, to Start Trading Under Ticker 'FYBR' on May 4
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Frontier Communications Parent, Inc. announced that the Company has successfully completed its financial restructuring process and emerged from Chapter 11. Through this process, Frontier has reduced its debt by approximately $11 billion and annual interest expense by approximately $1 billion. With a recapitalized balance sheet, Frontier is now well-positioned to accelerate its transformation to become a leading telecommunications technology company in the United States through investment in innovation, fiber infrastructure expansion and operational enhancements.
Frontier’s emergence from Chapter 11 follows receipt of all necessary state and federal approvals, as well as previous confirmation of the Company’s Plan of Reorganization by the U.S. Bankruptcy Court for the Southern District of New York.
As previously announced, Frontier’s common stock is expected to commence trading on the NASDAQ stock exchange under the ticker symbol FYBR at market open on May 4, 2021.
“Today Frontier takes a critical step forward in its multi-year strategic transformation, emerging as a stronger company poised to lead in its mission of Building Gigabit America,” said Nick Jeffery, President and Chief Executive Officer. “With a healthier financial position, we now have the right foundation to reinvent Frontier by accelerating investment in our fiber upgrades and delivering innovative solutions for our customers. Together, our team will accelerate our momentum and unlock Frontier’s full potential. I am honored to have the opportunity to lead the Company as we enter this new chapter.”
Mr. Jeffery continued, “I would like to express my appreciation to our customers, vendors and business partners for their support throughout our restructuring. I am also deeply grateful to our entire Frontier team for their hard work and constant dedication to keeping our customers connected. Frontier moves forward stronger, and with complete commitment to supporting the success of our stakeholders and delivering an exceptional experience for our customers.”
John Stratton, Executive Chairman of the Board of Directors, said, “Frontier has made significant progress in its transformation and has outstanding potential in its markets. Frontier now has a stronger balance sheet to invest and thrive through any cycle. The new Board and I look forward to working closely with Nick, who has a proven track record in our industry, and is off to a great start at Frontier. Together, we will capture the significant opportunities ahead for Frontier and drive sustainable, profitable growth, and enhanced value for our shareholders. I also want to express my appreciation to the retiring Board for its work on behalf of Frontier and all its stakeholders.”
Operational Review and Initial Fiber Expansion Plan
Frontier has embarked on a full operational review of its business that will consider every aspect of Frontier’s operations, including its approach to building its fiber network, customer engagement, digital strategy, costs, and organizational structure and culture. This review, which Frontier expects to complete by August, will build on the company’s initial fiber expansion plan that was launched during the financial restructuring.
Mr. Jeffery stated, “Our initial fiber expansion plan is a bold and ambitious undertaking that supports Frontier’s customer-centric strategy to become a fiber-rich provider with enhanced competitive positioning in markets with attractive returns. Through this plan, we will continue to deliver on our commitments to achieve improvements to our net promoter score, churn reduction, and wider customer and employee satisfaction. Our entire organization is energized and focused on the successful execution of our plan that will support Frontier’s mission well into the future.”
As part of the initial fiber expansion plan, Frontier is deploying capital and pursuing an extensive fiber build-out plan that will accelerate the Company’s transformation from a legacy provider of copper-based services to a fiber-based provider. This plan builds on Frontier’s successful Fiber-to-the-Home pilot program, using the planning, engineering, construction, and marketing knowledge gained from the pilot. Under the first phase of the plan, Frontier intends to invest heavily and pass more than 3 million homes and business locations, enabling a total of over 6 million homes and businesses with Gig-plus speeds.
Frontier is planning to pass approximately 495,000 additional locations in 2021.
As previously announced, in connection with the completion of its financial restructuring, Frontier Communications has formed a new eight-member Board of Directors, which includes six highly qualified, independent and diverse directors. Biographies for the new Board members can be found on the Company’s website frontier.com.
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