Windstream

About Windstream

Windstream Holdings filed for Chapter 11 bankruptcy on February 25, 2019. The telecommunications company had approximately 5.6 billion in debt. The bankruptcy was triggered by a 310 million judgment in favor of Uniti Group, a real estate investment trust, regarding a spinoff transaction. Aurelius Capital Management, a hedge fund specializing in distressed debt, had sued Windstream over technical violations of bond covenants. The case demonstrated how distressed debt investors could use bond covenant litigation to force bankruptcies. Windstream emerged from bankruptcy in September 2020. The restructured company had 2 billion in debt and focused on enterprise and consumer broadband services. The case raised questions about the power of financial engineering in corporate bankruptcy.