- Windstream (NASDAQ:WIN) CFO Bob Gunderman expressed confidence about the company's stance as it faces off with Aurelius Capital, which has alleged a Windstream debt default based on its approach to spinning off its infrastructure unit.
- That comes on the heels of multiple exchange offers and consent solicitations where Windstream is trying to get the alleged default waived. Aurelius' claims are tied to the spinoff of Communications Sales & Leasing, now Uniti Group (NASDAQ:UNIT).
- “We still feel very confident in our position, we enjoy the support of a very large part of our capital structure,” Gunderman says.
- He adds that the new notes the company's offering have restrictive covenants that limit the company's leverage before it could execute dividend payments or buybacks. He also sees $750M-$1B in potential asset sales.
- Aurelius and a trustee noteholder have filed a letter proposing that issues related to Aurelius' claims should be tried in the spring, and that an initial trustee lawsuit alleging default and Aurelius' allegations should be tried together.
- In action today: WIN +5.5%; UNIT +2.2%.
- Source: Bloomberg
- Previously: Windstream -2.5% as it launches latest effort to waive alleged default (Nov. 28 2017)
- Previously: In new filing, Aurelius challenges Windstream debt exchange (Nov. 22 2017)
- Now read: Uniti: Buy This 'Busted IPO' Yielding 15%?
Original article