“BS...All Windstream needs to is reject the MLA. ”
Yes, but wouldn’t that be the end of Windstream, too? If Windstream stopped making payments, Uniti would be in trouble. They’d declare bankruptcy, too.
But look at their expenses. Pretty much all interest. That would be stayed by bankruptcy. I think I read somewhere they have <100 employees.
The first thing they’d do is start leasing out the CLEC’s most attractive cables to Windstream competitors.
Regulatory agencies would have a fit with the ILEC. They’d force that side of the house to find a way to lease the lines anyway.
Windstream is better off not rejecting the lease but somehow getting it deemed not valid. At that point, they’re in this shadowy got a lease/ don’t gotta lease. They’re no longer bound by the lease terms.
Go skim the itemized April bill from Windstream’s investment bankers, PJT, searching on the term “Uniti”.
You’ll see a reference to a PowerPoint presentation (slide deck) that has a title along the lines of “no deal”. (I’m working from memory here).
It’s all a big game of chicken on both companies’ part but I think under bankruptcy law, Uniti has a stronger hand.
That said, I’m not a lawyer - this is my amateur analysis. Real lawyers (and smart laymen) feel free to correct me!