Judge Approves Windstream’s Settlement With Uniti

Rural broadband provider Windstream Holdings Inc. is closer to exiting from chapter 11 under a proposal that would allow hedge-fund manager Elliott Management Corp. and other investors to buy the bulk of the company’s equity out of bankruptcy while wiping out most junior debt. Judge Robert Drain of the US Bankruptcy Court in White Plains (NY) said that he would approve Windstream’s settlement deal with Uniti Group Inc., over a lease dispute. Uniti is a Windstream spinoff whose broadband network is crucial to the telecom company’s operations. The settlement will add about $1.25 billion in net present value to the Windstream estate. Windstream’s unsecured creditors had opposed the settlement, saying it leaves them out in the cold.