Thread regarding Windstream Corp. layoffs

Not paying post-petition rent

A landlord has filed a complaint that Windstream has not paid it any rent since the bankruptcy filing:

http://www.kccllc.net/windstream/document/1922312190607000000000001

The whole point of the $1 billion debtor-in-possession line of credit is to cover expenses during bankruptcy. A "debtor-in-possession" (fancy way of saying a company that's still operating during chapter 11) is expected to pay "post-petition" bills promptly once d-i-p financing is in place (that is, those bills they incur after bankruptcy filing). This way, vendors will continue to do business with the company.

Unless there's another side to this story, it's pretty crummy that Windstream is stiffing this landlord.

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Post ID: @ZrR6yiu

8 replies (most recent on top)

Update:

The original objector withdrew his rejection today, telling the court that Windstream paid up.

No word on the second objector’s status (the collocation landlord).

This was probably a smart move by the frustrated landlord.

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Post ID: @ZrR6yiu-7qza

The landmark building in Greenville isn't happy at all. Windstream has lied to them for years. I'm waiting on the Windsteam sign that is on top of the building to come down. Landmark got sick of windstream using the 24th floor for free. And kicked off of it. For me, it was a good thing. I was tired of getting rained on and the wind blowing in the window

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Post ID: @ZrR6yiu-5vlz

They can't hand execs millions in bonuses, pay the employees and pay their rent. They simply dont have enough money. So they stop paying the landlords, then layoffs really ramp up, then the execs take whats left and sell off. The end is near.

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Post ID: @ZrR6yiu-3tjk

Another landlord, Digital Realty, has come forward to complain that Windstream is not paying post-petition rent.

http://www.kccllc.net/windstream/document/1922312190610000000000066

38 colocation spaces, $341,000 in overdue rent bills.

More about Digital Realty:

https://en.wikipedia.org/wiki/Digital_Realty

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Post ID: @ZrR6yiu-3yfg

Thats the Central Office in LIC, NY. Been a capped site for well over a decade. Nothing but outdated TDM equipment onsite. Windstream plans on shutting it down. My bet is they never pay that bill.

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Post ID: @ZrR6yiu-1prd

Windstream can reject a lease -- they rejected a bunch of leases a month or two ago. If this rent is too high, they should move elsewhere and reject the lease. It's pretty simple. In the meantime, it's abusive to stay and just not pay the rent.

The debtor's management has to establish its credibility and trustworthiness to navigate the Chapter 11 process.

I don't fully understand the Trustee office's role -- seems like sort of a combination clerk, administrator and referee for the judge -- but he/she has clout.

If I were the U.S. Trustee's attorney for this case, this would really bother me. This also comes on the heels of the U.S. Trustee's office objecting to the KEIP and the KERP as sweetheart deals for management. ("Sweetheart" is my word, not theirs, but that was the gist of their objections).

If nothing else, the U.S. Trustee's attorneys and the bankruptcy judge know each other well and have worked together a long time.

• https://www.justice.gov/ust-regions-r02

• https://en.wikipedia.org/wiki/United_States_Trustee_Program

• http://www.kccllc.net/windstream/document/1922312190503000000000015

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Post ID: @ZrR6yiu-rsx

5 bucks says we didn't pay it as this is a lease we don't intend to pay.

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Post ID: @ZrR6yiu-osg

Holy cow. That's some crazy rent money every month. Broadview must have been making serious coin to afford extortionist rent like that.

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Post ID: @ZrR6yiu-nhv

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