After a year winding through the bankruptcy courts, Frontier Communications said it expects to emerge from Chapter 11 protection on April 30.

Frontier filed for bankruptcy protection on April 15, 2020. Earlier this month it said it had received all the necessary approvals for its reorganization plan,  which includes swapping about $10.2 billion in debt for equity, and investing about $1.4 billion to build out its fiber network. 

Frontier added that its new common stock will begin trading on the NASDAQ exchange on May 4, under the symbol “FYBR.” 

“Frontier is ready to set a new course as a revitalized public company. Through the restructuring process, the company has stabilized its business and recapitalized its balance sheet, while making significant progress on the early stages of implementing our initial fiber expansion plan,” said John Stratton, incoming Executive Chairman of the Board. “Frontier’s success with the Fiber-to-the-Home pilot program, which upgraded more than 60,000 locations from copper to fiber optic service in 2020, is just one example of the important work already underway. Frontier’s future is bright. I’m eager to work closely with our new Board, our CEO Nick Jeffery, and the rest of the leadership team to build the new Frontier.” 

The company said it will hold a conference call, which will be webcast, on April 30 (Friday) at 10 a.m. ET to discuss the path forward and Q1 results.

The new eight-member board of directors will be led by Stratton and Jeffery, who joined Frontier in December after serving as CEO of British wireless company Vodafone UK.  The remaining six independent board members are: Astra Capital founding partner and 2B Partners CEO Kevin Beebe; Coca Cola SVP and chief people officer Lisa Chang; former Liberty Media SVP, deputy general counsel and corporate secretary Pamela Coe; former Vodafone chief technology officer and current senior advisor to Bridge Growth Partners Stephen Pusey; former NFL chief operating officer and current senior advisor to the infrastructure division of Brookfield Asset Management Maryann Turcke; and Kaiser Foundation (Kaiser Permanente) SVP and chief digital officer Pratabkumar “Prat” Vemana.

“The future of Frontier is an innovative, modern technology company, poised to deliver next-generation fiber-rich infrastructure for our customers and communities,” Jeffery said in a press release. “Upon emergence, we will have the capital structure and resources to establish Frontier as a digital leader with top-tier talent and an entrepreneurial, high-performance culture. I want to express my appreciation to all our stakeholders who have enabled this process. Our team looks forward to beginning our next phase of long-term growth and value creation across the business.”

Frontier Communications, about a year after filing for Chapter 11 protection, received the final state approval of its reorganization plan, which the company said sets it on a path toward emerging from bankruptcy in “the coming weeks.”

Frontier filed for Chapter 11 protection on April 15, 2020. The company had worked out a restructuring plan that would exchange about $10.2 billion in debt for equity, and funnel about $1.4 billion toward building out fiber networks throughout its service territory.  On April 15, 2021, the company received the final approval of its plan from the California Public Utilities Commission, which it said was the last hurdle in the bankruptcy process. 

“Having already received all other required state and federal approvals, the Company expects to successfully emerge from Chapter 11 in the coming weeks,” Frontier said in a press release. 

Frontier stock, currently trading on the over-the-counter “pink sheets,” was priced at about 29 cents per share in early trading April 19, down about 5%. Once the company emerges from bankruptcy, it plans to return to trading on the full Nasdaq Exchange under the new trading symbol FYBR, which MoffettNathanson telecom analyst Nick Del Deo said in a note to clients “may be a bit corny, but it leaves no uncertainty regarding management’s focus.” 

According to the California PUC’s proposed decision to approve the reorganization in March,  Frontier would have to invest about $1.75 billion in its fiber network in the state over the next four years, including expanding broadband availability in unserved or underserved communities. As part of that condition, Frontier would build out fiber to 350,000 customer locations by Dec. 31, 2026, of which 150,000 locations must be in areas where Frontier has lower rates of return. 

As it nears the bankruptcy exit, Del Deo, who initiated coverage of the stock on April 19, added that he believes with new management, more manageable leverage and funds earmarked for an aggressive fiber buildout, Frontier could overcome the hurdles of the past. Frontier named former Vodafone UK CEO Nick Jeffery as its CEO in December. 

The analyst added that the company has identified millions of homes in its footprint that could be upgraded to fiber at attractive returns, “which would put the business on a sustainable path and potentially create billions of dollars in value.”

But he cautioned that although Frontier will emerge with substantially lower debt -- about $7 billion -- only about one-third of its total revenue comes from fiber services, with more than half coming from its struggling commercial unit. 

“A successful transformation would likely bring Frontier to revenue stability or modest growth, but not make it a star,” Del Deo wrote.

Root Sports Southwest is live and available to more than 4 million homes in the Houston area.

The regional sports network, owned by AT&T U-verse and DirecTV, which is being operated by the DBS leader, tipped off at 6 a.m. (CT) with a poker show and will present its first Houston Rockets NBA basketball game against the Memphis Grizzlies at 7 p.m. (CT).

Root Sports Southwest is the successor to Comcast Sports Houston, which AT&T and DirecTV bought out of bankruptcy. The RSN, the fourth under DirecTV Sports Networks portfolio -- Rocky Mountain, Pittsburgh and Northwest -- will also televise games and related programming from MLB’s Houston Rockets.

Root Sports Southwest, which is being carried by AT&T and DirecTV, which are awaiting federal approval of their proposed, as well as Comcast, is available to more than 4 million homes in and around Houston. DirecTV said that’s up from under 1 million for CSN Houston, which was only carried by Comcast and a handful of smaller providers.

Root Sports Southwest is positioned on U-verse channels 758 in standard-definition and 1758 in the high-definition format, while DirecTV subs can find it on channel 674. Local Comcast cable customers will see Root Sports Southwest in place of CSN Houston on channels 39 in SD and 639 in HD.  The new network’s programming schedule is available on www.rootsports.com.

“We know these past two years have been tough for many Rockets and Astros fans who couldn’t cheer on their teams while sitting in front of their TVs at home,” said Patrick Crumb, president of DirecTV Sports Networks. “So we welcome this opportunity to work with the teams and the talented, passionate Houston-based network staff to deliver a high quality, innovative sports network that millions more families can enjoy.”

“This is a great day for Houston sports fans,” said Aaron Slator, president, content development, AT&T. “Together with DIRECTV Sports Networks, we're excited to be able to offer Root Sports Southwest and bring the Rockets and Astros back into the homes of our U-verse customers.”

The launch of Root Sports Southwest follows 14 months of chapter 11 wrangling. Under the reorganization plan, the Astros (46%), Rockets (31%) and Comcast (23%) lost their network equity positons, and the teams agreed to forego payment of more than $100 million in unpaid rights fees. DirecTV and AT&T bought the RSN for $5,000.

For its part, Comcast, through a financial appeal, is still trying to recoup more of the $100 million secured loan that was earmarked for CSN Houston's start-up costs, including a studio build-out and the teams' rights fees. The bankruptcy court ruled it could only receive $26 million of that total.

With a reported $4 per month per subscriber ask within its central area, and 70 cents elsewhere, CSN never collected enough affiliate revenue to pay the clubs their rights fees and meet its other obligations. Among those sitting on the sideline were AT&T, DirecTV, Suddenlink, Charter, Time Warner Cable and Verizon FiOS. The RSN’s TV territory extends throughout Texas, Oklahoma, Arkansas, Louisiana and eastern New Mexico.

The new RSN started Monday at 6 a.m. (CT), with Heartland Poker Tour: Season 10. Its schedule then follows with four hours of paid programming.  The Rich Eisen Show and The Dan Patrick Show, both staples of DirecTV’s Audience Network and other outlets, will run for three hours apiece, before more poker fare bridges the gap until the Rockets pregame show at 6:30 p.m., the team’s contest against the Memphis Grizzlies at 7 p.m. and the post-game show at 9:30 p.m. 

Given NBA TV territorial restrictions, the RSN evidently will present an alternate feed of encore of the college football game between Texas Southern and Jackson State from 6:30 p.m. to 9:30 p.m., with Poker Night in America subbing for the post-game show in restricted areas.

According to the website's listing of teams, Root Sports Southwest will be home to 70 Rockets games, plus the pre- and post-game shows, and auxiliary fare.  On the diamond, 160 Astros games and related programming also are on tap.

From the college ranks, the listing outlines Big Sky and Southern Conference football, plus Mountain West and Conference USA pigskin and hoops action. Rice basketball appears to be in the mix, flanked by a coaching show, as well as a University of Houston coach’s basketball program.

Although 96 of the 141 CSN Houston employees have lost their gigs in the change, the talent subheading under the "about us" tab on the site indicates that Bill Worrell, Matt Bullard and Clyde Drexler will still call Rockets games, with Calvin Murphy remaining a part of the club’s studio shows. Bill Brown, Alan Ashby, Geoff Blum and Art Howe (studio) will call the 2015 Astros season.

Comcast attorneys will meet with a U.S. District Court judge on Wednesday seeking an emergency stay as it looks to reverse a bankruptcy court decision allowing the sale of its regional sports network in Houston to DirecTV and AT&T.

The cable company, whose NBC Sports Group has operated Comcast Sports Net Houston, is slated for a  hearing with judge Lynne Hughes on Nov. 5. Comcast, if the stay is not granted, is also expected to make an immediate appeal with the 5th U.S. Circuit Court of Appeals to overturn the CSN Houston reorganization plan, which calls for DirecTV and AT&T to purchase the embattled service with the former operating it under its Root Sports umbrella.

On Oct. 30, bankruptcy court judge Marvin Isgur approved a plan supported by MLB’s Houston Astros and the NBA’s Houston Rockets. Isgur reorganization would result in the teams and Comcast losing their equity positions in the RSN, which has been under Chapter 11 protection since September 2013.

The plan calls for AT&T, DirecTV and Comcast to carry the rebranded service, with an eye toward Roots Sports Houston tipping off on Nov 14.

Comcast deems Isgurs ruling “unlawful in several ways,” notably in that the MSO is not allowed to receive full payment of a $100 million secured loan that was used by the RSN for start-up costs, a studio build-out and early right fees payments to the clubs.

Launched in October 2012, CSN Houston never gained distribution traction beyond Comcast and a handful of smaller providers in the Houston DMA, and, as such, was unable to pay rights fees and meet other expense obligations.

UniTek Global Services, a provider of installation, fulfillment and infrastructure services to telcos, cable operators and wireless service providers, has filed a voluntary, prepackaged Chapter 11 bankruptcy reorganization.

Blue Bell, Pa.-based  UniTek announced Monday that it had secured the support of all of its lenders, including Littlejohn & Co. and New Mountain Capital, among others, collectively representing 100% of its secured debt for its previously announced prepackaged restructuring Plan.

UniTek listed assets of $3.2 million and debut of $186 million in documents filed with the U.S. Bankruptcy Court in Wilmington, Del., according to Bloomberg. 

UniTek’s customers include DirecTV (via its DirectSat subsidiary), and to cable operators such as Comcast, Charter Communications and Time Warner Cable via its FTS USA LLC unit, which operates primarily in the eastern and southern U.S. Its Ontario, Canada-based Wirecomm Systems division provides installation and fulfillment services to Rogers Communications, with Pinnacle Wireless USA

UniTek said it expects to keep the company operating during the bankruptcy process.

Under terms of the restructuring plan, 40% of the company’s existing term debt will be exchanged for equity in the company, as well as a substantial reduction in cash interest rate. In addition, its lenders have agreed to advance up to $43 million of new capital to support the UniTek’s recapitalization.

In May, the company posted first quarter revenues of $63.2 million, a decrease of 15% versus the year-ago quarter. It blamed the reduction on declines in both cable and satellite home installations due mainly to “weather disruptions” in the markets UniTek serves as well as “exiting certain low or negative margin cable markets.”

Those betting the under on whether CSN Houston’s final live telecast was the Oct. 24 preseason game between the Houston Rockets and Dallas Mavericks have collected their money.

The ongoing chapter 11 bankruptcy saga will extend until at least Thursday, Oct. 30, when final arguments in the case are now scheduled for 3 p.m. (CT), instead of Oct. 28.

Under the plan, DirecTV and AT&T U-verse would gain ownership of the network, which would trade under the Roots Sports banner, from the prior owners, the NBA Rockets, MLB’s Houston Astros and Comcast/NBC Sports.

The Houston Chronicle reported that as a deadline to submit their final modifications neared, attorneys for the network asked judge Marvin Isgur for more time to submit changes regarding the sale of furniture, fixtures and equipment at CSN Houston’s downtown studios from Comcast to the network.  The DBS provider and the telco, which are waiting federal regulatory approval over their proposed merger, want to use the extant equipment at the facility for the new network but refuse to pay for it as part of their agreements with the teams.  In turn, the clubs have proposed a plan that transfers ownership of those items to the new network while compensating Comcast for the goods.

At any rate, CSN Houston will be televising the Rockets’ game against the Utah Jazz on Oct. 29 (the team’s opener against the Los Angeles Lakers on Oct. 28 will air nationally on TNT).

Comcast opposes the plan for a number of reasons, and is still looking to reclaim some compensation for the $100 million loan it provided to the RSN for start-up costs, the studio build-out and early rights fee allotments; fair value for NBC Sports' 22% stake in the network that was valued at $700 million in 2010 and would be sold for just $5,000 to DirecTV/AT&T; and exculpation from creditors upon the transfer of the network.

Comcast/NBC Sports could also file an appeal that would further delay matters.

At any rate, CSN Houston has issued a schedule of Rockets’ telecasts covering its first five regional telecasts.

Launched in October 2012 and seeking a monthly subscriber fee in the $3.40 neighborhood, CSN Houston failed to gain distribution traction beyond Comcast and a few smaller providers in the Houston DMA, much less with DirecTV, AT&T U-verse, Time Warner Cable, Suddenlink, Charter and Verizon, among others, in its five-state TV territory that also stretches to Oklahoma, Arkansas, Louisiana and New Mexico.

As such, the RSN never generated nearly enough affiliate revenues to pay the teams their rights fees and meet its bills.

The RSN ended live news and studio programming on Oct. 22. Under the bankruptcy plan, 96 of CSN Houston’s employees will lose their jobs.

Will CSN Houston’s Friday night coverage of the Houston Rockets-Dallas Mavericks NBA preseason game be the embattled regional sports network’s last live telecast?

Perhaps.

Closing arguments for the RSN’s year-long Chapter 11 bankruptcy case is set for Tuesday, Oct. 28, at which point Judge Marvin Isgur will be asked to approve a reorganization plan that sells CSN, which is owned by the Rockets, MLB’s Houston Astros and Comcast’s NBC Sports Group to DirecTV and AT&T U-verse. In turn, the DBS provider and the telco, which are awaiting federal approval of their proposed merger, would relaunch the service under the Roots Sports Houston banner with carriage from the owners and Comcast in the Houston DMA and beyond.

After hearing testimony from the parties on Wednesday Oct. 22 – the same day that CSN Houston personnel delivered their final live studio and news shows, as 96 of the service’s 141 employees will lose their jobs under the plan -- Isgur set next Tuesday for closing arguments.

The teams and DirecTV/AT&T hope the plan will be approved that day. That means the Rockets ‘ game against Utah on Oct. 29 would air on the new channel. (The team starts its season on Oct. 28 in Los Angeles against the Lakers with the contest airing nationally on TNT.)

However, Comcast opposes the plan for a number of reasons, and is still looking to reclaim some compensation for the $100 million loan it provided to the RSN for start-up costs, the studio build-out and early rights fee allotments; fair value for NBC Sports' 22% stake in the network that was valued at $700 million in 2010 and would be sold for just $5,000 to DirecTV/AT&T; and exculpation from creditors upon the transfer of the network.

Comcast/NBC Sports could also file an appeal that would further delay matters. If that were the case, it’s unclear whether other Rockets regional contests – their home opener versus the Boston Celtics is scheduled for Nov. 1 – would continue to air on CSN Houston. Bankruptcy protocol usually mandates that business/operations continue until case resolution. In the interim, CSN Houston is currently airing a mix of infomercials and other filler fare.

Under Isgur’s plan, the teams would not only lose their equity in the succeeding service, but abandon their claims to some $100 million in rights fees owed by CSN Houston.

Comcast/NBC Sports declined to comment.  DirecTV and AT&T declined to comment.

Launched in October 2012 and seeking a monthly subscriber fee in the $3.40 neighborhood, CSN Houston failed to gain distribution traction beyond Comcast and a few smaller providers in the Houston DMA, much less with DirecTV, AT&T U-verse, Time Warner Cable, Suddenlink, Charter and Verizon, among others, in its five-state TV territory that also stretches to Oklahoma, Arkansas, Louisiana and New Mexico.

As such, the RSN never generated nearly enough affiliate revenues to pay the teams their rights fees and meet its bills.