Windstream Holdings Inc. can’t borrow more from its credit line after a court ruled that its bonds were in default, and may choose to file for bankruptcy before March 31, according to analysts at Citigroup Inc.
The Friday court decision has likely triggered cash needs for the rural telecom service provider, Citigroup high-yield bond analysts David Phipps and Tony Deng wrote in a report Wednesday. Under Judge Jesse Furman’s ruling, Windstream defaulted on bonds in 2015 by spinning off Uniti Group Inc., and owes $310 million to New York hedge fund Aurelius Capital Management LP, the plaintiff in the case. ...
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