Windstream Holdings Inc. plans to emerge from bankruptcy protection this summer as a privately owned company governed by investment firms that are now its top creditors.
The company's largest owner would be Elliott Management Corp., a New York hedge fund that most recently agitated for the departure of AT&T's chairman and chief executive officer.
Last week, Windstream filed a supplement to its business-restructuring proposal, which could receive final approval as soon as Wednesday in U.S. Bankruptcy Court in New York. The supplemental filing outlines the company's post-bankruptcy governance structure.
Investment banking firms that are now Windstream's top creditors will be in charge of managing its future and will own substantially all of the equity in the company, according to the filing.
The filing also outlines a complete overhaul of the company's board of directors that gives control of 10 of the company's 11 board seats to the investment firms.
Windstream's new 11-member board would include the company's CEO and five members appointed by Elliott Management. Four other creditors will collectively appoint the other five board members, leaving Elliott with a firm handle on Windstream's future.
One of Elliott's board designees will serve as chairman of the reorganized Windstream, the filing says.
U.S. Judge Robert Drain has scheduled a confirmation hearing Wednesday for final testimony on the company's restructuring proposal, which calls for Windstream to exit bankruptcy by August with reduced debt of more than $4 billion.
Elliott Management has a reputation for using aggressive tactics to intervene in the operations of its investments. Last year, the company stirred up a shareholder battle at AT&T that ultimately led to the announced resignation of Chairman and CEO Randall Stephenson, who plans to depart the global multimedia company on July 1. AT&T also agreed not to make any more large acquisitions like WarnerMedia or DirecTV.
Windstream and its ownership group will appear Wednesday before Drain to hash out the company's business restructuring proposal, which will set the foundation for the firm's post-bankruptcy governance and operations.
Any outstanding shares of Windstream stock would be canceled when the company exits bankruptcy, the supplemental filing said. Windstream voluntarily deslisted from NASDAQ when it filed for bankruptcy in February 2019. Since then, it has traded as a penny stock.
Windstream has momentum entering Monday's hearing – creditors have signed off on the restructuring proposal and the company also has resolved a lawsuit with Uniti Group Inc. of Little Rock.
In March, Windstream's leading creditors approved the business-restructuring proposal.
Last month, Drain approved Windstream's network-leasing settlement with Uniti.
Under the settlement, Uniti has agreed to invest up to $1.75 billion to improve Windstream's network through 2030. Uniti also will pay Windstream about $490 million in cash and purchase fiber assets from Windstream for another $285 million.
WOMEN'S FOUNDATION
The Women's Foundation of Arkansas has been selected to participate in an economic development project led by the world's largest philanthropic network dedicated to supporting women and girls.
The Women's Funding Network's Regional Women's Economic Mobility Hub dedicates funding and other resources to bolster economic opportunities for women and their families.
"This grant marks a groundbreaking advancement for our organization and our mission to promote economic growth for women and girls all across Arkansas," said Anna Beth Gorman, executive director of the state organization.
In the program, each state hub will focus on factors such as the social, economic, health and environmental conditions that influence development in the region.
To help women-owned businesses during the pandemic, the Arkansas foundation has created an $80,000 fund to provide grants to small businesses experiencing economic hardship.
To learn more, visit: WomensFundingNetwork.org.
TED WAGNON
This is a little personal.
Ted Wagnon died last weekend.
Ted was a founding editor of Arkansas Business before embarking on a successful career in corporate communications and a side job as a wisecracking storyteller holding court at coffee shops around Little Rock. ("Mylo or Meteor, they're both near the house," he'd say.)
He leaves a legacy as friend and mentor to many of the state's communications professionals. Ted was a kind and generous man who became a confidant to many in the Arkansas business and communications communities.
Until a few years ago, I knew Ted only in passing – we were familiar with each other's work.
He reached out at a time, as the poet songwriter said, when I was hungry and it was his world. He was gracious and supportive and made a lasting impression.
Our last conversation was in September at Mylo. I had just taken this job and, of course, he had a million ideas he wanted to run by me. Yes, I left with about 10 story ideas and dozens of issues to pursue for this column. That was how a conversation with Ted would go. He was always insightful and helpful.
Ted was a true believer in a good story well told. We'll tell tales about him for years to come.
Rest easy, friend. You'll be missed.
FINANCIAL STRESS
You're not alone in feeling stressed about your finances during the coronavirus pandemic – a national survey shows that nearly half of American workers say they are under "a lot of financial stress" as the health and economic crisis persists.
About 1 in 3 workers report they have taken a financial action – dipped into retirement savings – to help endure the pandemic, according to a survey from Edelman Financial Engines.
Those saving for retirement are less likely than non-savers to report financial stress (44% vs. 57%).
The findings are based on a survey of more than 1,000 American workers.
Nearly 50% of those workers reported relatively weak financial well-being across three different measures: level of financial stress, outlook and ability to handle a mid-size financial shock.
"We are seeing high levels of financial stress among employees and it is impacting many aspects of their lives," said Kelly O'Donnell of Edelman.
Employment is a major concern: 85% worry about their own job while 46% are concerned about their spouse's income.
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Windstream's creditors to hold sway after its bankruptcy exit - Arkansas Democrat-Gazette
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