Debt Investor Aurelius Says Frontier Is No Windstream

Debt investors have spent a fair amount of time speculating that Frontier Communications could wind up in bankruptcy.

They cite the recent Chapter 11 filing of Frontier’s peer, Windstream Holdings. This week Aurelius Capital Management -- whose careful reading of debt documents led to Windstream’s bankruptcy -- outlined why Frontier is different.

• “Stripped of the Windstream red herring, Frontier’s legal position is very strong,” wrote Dennis Prieto, a managing director at Aurelius, in a June 19 letter that advocated for an out-of-court overhaul that could save about $200 million a year in interest.
• The Windstream case hinged on little more ...