So if we do manage to Refi all of our debt until 2020 or longer, and we still are 8-10 B in debt and still paying interest on that debt, if we still don’t make enough more than our expenses, won’t we still go bankrupt?
6 replies (most recent on top)
WTH is going on with this site? WS trolls?
.
They changed the bonds so IF Windstream goes into bankruptcy, they will be first inline to get a piece of the new company. They put themselves in a win win situation and get more money IF the company stays solvent. These are professional investors. Personally, I think they just kicked the can down the road. There is one big IF to this situation, Windstream did not put all there fiber assets into the REIT. My feeling it they think they can sell this in the future to pay off the dept. It's the only chess move they have left. So, in reality, there are many moving pieces that know one knows what the end game will look like. They should have NEVER split the company. The REIT it making money, still has a dividend. The board should be let go just on this principle alone. Windstream would be a stronger company now if they still were whole with the REIT..The REIT itself could survive with the new 5g technology why Windstream dies. It will be interesting to watch how this plays out. It is just upsetting to see Windstream put themselves and there employees in a bad spot. This is my opinion, I don't work there nor do I owne anything in either company.
The REIT has promised its investors that it will distance it from dependence on WIN revenue - WIN is dead weight pulling the REIT underwater with it as it sinks. There is no way the REIT will step in and save WIN, it was jettisoned to die the moment UNITI was created
When the smoke clears and dust settles I’m not sure we can pay the interest on the debt. Which leads to more layoffs to cut costs to cover the debt payments.wouls it be possible for the Reit to takeover Windstream.
Windstream is 6 b in debt. If there are still investors willing to buy our bond offerings then the game keeps going. As we saw last month that there are still institutions that are buying our bond offerings or swapping bonds. So we keep up the dance. These investors, junk bond investors, are typically pretty dangerous (see current lawsuit) they are vulture capaitialists after all. If they stop buying the bonds then the game ends in bankruptcy court. In bankruptcy court the ownership of the new restructured company falls into the hands of the investors and the debt holders.