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Uniti Group Address’ Windstream’s Bankruptcy Case PDF Print E-mail
Tuesday, 09 July 2019 07:27

Uniti Group Inc issued a statement in response to the motion filed in the bankruptcy cases of Windstream Holdings and its subsidiaries (collectively, “Windstream”) by UMB Bank, National Association and U.S. Bank National Association, as indenture trustees for certain unsecured notes issued by certain of Windstream Holdings’ subsidiaries, seeking to prevent Windstream’s continued payment of rent under its master lease agreement with Uniti.

Windstream Holdings makes monthly rent payments to Uniti under the master lease in exchange for access to Uniti’s network, which Windstream uses to serve its customers.  Federal bankruptcy law requires that Windstream continue to make regular rent payments to Uniti during its bankruptcy in order to maintain access to the network, and throughout its bankruptcy, Windstream has continued to make the required timely rent payments to Uniti.

Kenny Gunderman, President and Chief Executive Officer of Uniti, commented, “Uniti’s relationship with Windstream is simple: Uniti owns the network that Windstream uses to service its customers, and Windstream must continue to pay rent in order to maintain access to the network - otherwise it will not be able to operate its business. This latest effort by out-of-the money junior creditors of Windstream to extract value from Uniti does nothing to change that essential fact. Consistent with the views of Windstream’s counsel and advisors when the lease was established, we believe that the lease is a true lease and will be respected and enforced as such, and we will vigorously contest any argument to the contrary.”

Mr. Gunderman continued, “As we have repeatedly said, we intend to be long-term partners for Windstream and we remain open to working with Windstream and its constituents on mutually beneficial modifications to the lease. We hope that Windstream and its constituents will focus on building a sustainable plan for Windstream’s future rather than pursuing meritless litigation that gambles with the stability of the business and puts at risk the customers it serves.”