Thread regarding Windstream Corp. layoffs

uniti-windstream-brothers-arms

https://seekingalpha.com/article/4266301-uniti-windstream-brothers-arms?dr=1

Looks like TT and Ken cannot play nice in the sandbox together. I have a feeling

that part of the chapter 11 gets pushed out until the end. WIN doesn't want to

lease/own any copper assets. MOST of the SDWAN circuits deployed are are offnet

Cable and 4G.

Windstream is currently producing very little net cash flow from operating and investing activities.

Revenues have fallen 9% year on year

$92 million was the interest run-rate in Q1-2019

If very soon under the current lease, there is no money to even pay $90 million a quarter, let alone repay any of the armada of debt

Currently, Windstream bonds holding some value are trading near 24 cents on the dollar.

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Post ID: @ZdA98yW

11 replies (most recent on top)

Win can’t survive selling complete offset ckts.

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Post ID: @ZdA98yW-2inu

What’s with the Huntersville, NC address posted below?

Why’s it posted on all these threads?

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Post ID: @ZdA98yW-dyr

10130 Rose Brook Ln

Huntersville, NC 28078-3388

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Post ID: @ZdA98yW-ofd

Many commentators are trying to justify owning / purchasing UNITI stock.

Even dirt bag TT admitted they are overpaying for this lease on last earnings call by 80% (wonder who did the financial due diligence when this Sell / Leaseback was created - HV Bob.

If UNITI somehow ends up having to market the assets, that Windstream publicly states they are overpaying for by 80%, then UNITI revenues drop regardless as any astute customer will use this information to drive down pricing. Also, there will be a long period between when the asset can be leased and in operation with another carrier to start bringing in said reduced revenue. Furthermore, Unit has no technical employees to maintain these assets if Windstream walks away. And dont forget that UNITI would also start spending money to pay for maintenance, taxes, insurance, and any upgrade costs since Windstream currently is required to do so on these assets via the triple net lease. Unit wanted to be a landlord with no direct responsibilities.

Lastly, you have a company that has not provided pay adjustments for years to the majority of workers. These worker then read almost daily in the news about employees every other industry in America garnering 3% or higher increases in pay. Even public workers and Social Security recipients are obtaining percentage increases that Windstream employees can only dream about. Can you imagine how disheartened the entire work force is at Windstream yet? Both companies are likely to fold since the Leadership, the BoDs and the Judge seem to be so out of touch with the realities of the situation.

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Post ID: @ZdA98yW-fsj

The comments at the end of that Seeking Alpha article are worth a skim. Some are dumb, some are intelligent. Two worth noting:

https://seekingalpha.com/article/4266301-uniti-windstream-brothers-arms#comment-81878882

There's been this back and forth online about Windstream "rejecting" the Uniti lease. That would destroy both companies, but some argue Windstream may threaten this as a kamikaze move to get Uniti to the bargaining table. This commenter, "JK47", points out that any rejection has to be approved by the judge who's going to be unlikely to endorse a kamikaze approach, especially since the ILEC part of WS provides essential service.

https://seekingalpha.com/article/4266301-uniti-windstream-brothers-arms#comment-81876797

The original writer made a big point of lumping all of Windstream's capital investment expenses together in coming up with his number which then drove his conclusions about Windstream. This commenter ("zhe") breaks it down a bit more, somewhat undermining the article writer's argument

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Post ID: @ZdA98yW-ved

The toilet is going flush and hopefully they all go down the first time.

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Post ID: @ZdA98yW-hvv

This is just part of the game, these guys are all in it together and will walk away with millions.

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Post ID: @ZdA98yW-nzc

It's easy Windstream gives up exclusively leased assets (fiber) and Windstream pays less. Uniti gets to market that fiber. People might utilize it because it's not Windstream. They will probably return alot more from the ability to market that fiber or utilize it for its own carrier services then Windstream can. It was all orchestrated when the tax loop hole was corrected after CS&L was formed. It's all a game by the brothers Gund and TT.

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Post ID: @ZdA98yW-ygt

Uniti is officially in a strong position under the law. They shouldn’t have to negotiate as the lessor (owner).

However, the risks for Uniti are potentially fatal if the creditors many highly paid lawyers can find a technicality to get the whole lease thrown out. On the other hand, if they make some concession, the revised lease would be bulletproof after chapter 11 having gotten official approval.

Uniti has said already that it’s open to making “win/win” changes to the lease. I think they’re really hinting at Windstream “win a little”/ Uniti “lose-a-little”

Uniti really wants to go out and cut new deals with other carriers and grow its business such that Windstream is <50%. They have to be able to raise money (borrow money and/or sell stock). They can’t do either unless Windstream gets out of bankruptcy

One possibility is that Uniti issues some new stock, and gives it to Windstream as a bone to throw creditors.

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Post ID: @ZdA98yW-wtz

That tells me the insiders know Win is worthless.

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Post ID: @ZdA98yW-lsx

Interesting article - thanks for posting

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Post ID: @ZdA98yW-ufi

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