Windstream Sues to Block Aurelius, Cites Bankruptcy Risk

Windstream Holdings Inc. is fighting back against what it says is an attempt by Aurelius Capital Management to force it into bankruptcy.

A unit of the loss-plagued provider of rural telephone service asked a Delaware Chancery Court judge Sept. 29 to find that it hasn’t defaulted on $3 billion of bonds due to its 2015 spinoff of Uniti Group Inc. It said in a filing that if it is found to default, it could threaten the existence of the company (Windstream Servs. LLC v U.S. Bank N.A., Del. Ch., 2017-0693, filing 9/29/17).

Aurelius’s actions are “opportunistic and improper” ...