Frontier Communications

About Frontier Communications

Frontier Communications filed for Chapter 11 bankruptcy on April 14, 2020. The telecom company had 17.5 billion in debt. Frontier had acquired wireline assets from Verizon in California, Texas, and Florida for 10.5 billion in 2016. The acquisition doubled Frontiers customer base but saddled it with debt. Customer service deteriorated. Revenue declined as customers switched to cable competitors. Frontier emerged from bankruptcy in January 2021 after eliminating 11 billion in debt. Bondholders took control of the company. The restructuring also addressed significant pension and retiree healthcare obligations. Frontier invested in fiber optic upgrades after emerging from bankruptcy. The case illustrates the challenges of integrating large acquisitions in declining industries with high leverage.