Frontier Lenders Oppose Bankruptcy Loan Unless They’re Paid, Too

Frontier Communications Corp. doesn’t need to borrow $460 million while in bankruptcy because it has plenty of cash to reorganize, a group of the telecom’s senior lenders told a federal judge Thursday.

• Those lenders would be willing to drop their opposition if they are paid an unspecified amount of so-called default interest, Brian Hermann said at Frontier’s first day in bankruptcy court in White Plains, New York
  • The lenders contend they have a contractual right to a higher default interest rate because Frontier filed for bankruptcy, according to court documents
• Lenders who are first and second in line for repayment ...