Reports from various tech and business outlets say that Internet service provider Frontier is planning to file for bankruptcy.
In a story first reported by Bloomberg Business and picked up by multiple tech sites, it’s claimed that the company will seek Chapter 11 bankruptcy protection for nearly $18 billion dollars in debt. Chapter 11 allows a company to work out a payment plan and still continue to operate.
Frontier currently offers television, Internet, and home phone services in our region. According to the company’s third-quarter report for 2019, they lost $345 million dollars in three months. In that same period of time, they lost 52,000 landline phone subscribers and 1,000 broadband customers. The continual decline of home phone subscribers is considered to be one of the primary factors in the company’s financial troubles.
West Virginia audited Frontier’s poor performance as a rural phone provider earlier this year leading to an admission from a company VP that rural landline service is high-cost and unsustainable.
Shortly after the release of the financial report, Frontier replaced CEO Daniel McCarthy with Bernard “Bernie” Han. In a statement after his appointment, Han acknowledged that the company faced many financial challenges.
So far, Frontier has made no official statement about a bankruptcy filing.
Reports say Frontier will file for bankruptcy