- If Windstream Holdings (WIN +5.4%) is forced into bankruptcy by a loss in its debt-default trial against Aurelius, it could pursue fraudulent transfer claims tied to lease payments to Uniti Group (UNIT +0.9%), Bloomberg Intelligence says.
- Analyst Negisa Balluku suggests in a new report that such claims could gain Windstream concessions, or cut the price on its $650M yearly Uniti lease.
- If lease payments were made while Windstream was insolvent and thus deemed to be fraudulent, Uniti might be forced to return lease payments, Balluku writes. If the company's argument holds that payments to parent Windstream Holdings from Windstream Services to pay the lease are dividends, it may be that no value was given back.
- Previously: Windstream +14.4% on earnings, refinancing talks (Aug. 09 2018)
- Previously: Windstream refinances $1.4B; default trial wraps up (Aug. 01 2018)
- Now read: Windstream's Positive Step Has Me Re-Examining My Original Thesis
Original article