Frontier Communications Files Bankruptcy, Plans to Cut Debt (1)

Frontier Communications Corp. filed for bankruptcy with a deal to cut more than $10 billion of debt and hand ownership to bondholders following years of annual losses in its wireline telecom business.

The Chapter 11 filing by the Norwalk, Connecticut-based company, which has about $17 billion of debt, ranks as one of the biggest telecom reorganizations since Worldcom Inc. in 2002. The filing in White Plains, New York, allows Frontier to stay in business and keep providing customers with internet, TV and phone service in 29 states while it works out a turnaround plan.

Frontier’s restructuring agreement has the support ...