Internet service provider and telecommunications company Frontier Communications is expected to file for bankruptcy in the next two months according to a report from Bloomberg.
Frontier executives met with creditors last week to try and “negotiate a pre-packaged agreement before $356 million of debt payments come due March 15.” The deal is expected to end in Chapter 11 bankruptcy, which would allow the company to continue operations without inconveniencing its customers. If the bankruptcy goes through, it would be one of the largest telecom reorganizations since WorldCom in 2002.
This expected bankruptcy follows Frontier’s reported $16.3 billion debt last September, which also came along with a dropping customer base as the market transitions away from landline usage. Frontier has also reduced its employees to make up for the loss and are in the process of selling off its operations to WaveDivision Capital in Washington, Oregon, Idaho, and Montana.
This is only the latest issue an embattled Frontier has faced over the last few years. Along with the dropping customer base, there have been constant complaints of poor customer service, large cancellation fees and overcharges, customers still having to pay router rental fees even when they have their own router, and constant outages in some areas. In fact, Frontier is even currently being investigated for repeated outages in New York state and it even reached a settlement last October in Minnesota for a similar issue.
Frontier has not yet responded to any requests for comment on the reports.