Frontier announced Tuesday that it has filed for Chapter 11 bankruptcy. The company noted that it plans to continue providing service without interruption.
In a press release following the filing, Frontier said that, with a restructuring agreement, the company and bondholders have agreed to implement a plan for reducing the company’s debt by over $10 billion.
“With a recapitalized balance sheet, we will have the financial flexibility to reposition the Company and accelerate its transformation by allocating capital resources and adding talent to enhance our service offerings to our customers while optimizing value for our stakeholders,” Robert Schriesheim, chairman of the finance committee of the board of directors, said in a statement.
“With this agreement with our Bondholders, we can now focus on executing our strategy to drive operational efficiencies and position our business for long-term growth,” added Frontier President and CEO Bernie Han. “At the same time, the COVID-19 pandemic continues to impact the entire business community, and our team is focused on ensuring the health and safety of our employees and customers.”
Frontier will file motions with the Bankruptcy Court that would allow it to continue providing service without interruption or disruption. In the statement, the company said it believes this restructuring agreement will allow it to work toward long term growth.
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