Frontier Communications Takes Another Step Towards Exiting Chapter 11 Protection

Sets stage to become a publicly traded fiber-centric provider.

  • Frontier Communications

 

NORWALK, Conn.—As Frontier gets ready to emerge from Chapter 11 on April 30, the service provider has put the elements in place to transform itself into being a fiber-centric broadband provider.

“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 future of Frontier is an innovative, modern technology company, poised to deliver next-generation fiber-rich infrastructure for our customers and communities,” said Nick Jeffery, President and Chief Executive Officer. “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.”

Jonathan Chaplin, Managing Partner at New Street Research, said the plan has great potential for the once struggling ILEC.

“Frontier is one of the most compelling opportunities we see within the US Communications landscape,” he wrote in a research brief. “We expect the company to transform itself from broken ILEC into a fiber-based infrastructure asset, resulting in a return to growing revenues, expanding margins, a higher multiple, and a claim to acquire more copper assets to transform.”

In connection with the completion of its financial restructuring, Frontier Communications will form a new eight-member Board of Directors, effective upon emergence from bankruptcy, comprised of John Stratton as Executive Chairman of the Board, CEO Nick Jeffery and six highly-qualified, independent directors.

Mr. Stratton continued, “Establishing a new Board is a critical component of Frontier’s path forward. This group of executives has extensive telecommunications, digital technology, infrastructure, finance, human capital management, and regulatory experience, as well as strong records of driving top-tier results. As a new Board, we will harness our collective expertise, backgrounds and oversight to realize the significant value-enhancing opportunities ahead of Frontier. Importantly, I would also like to express my appreciation to our retiring Board members for their service.”

The members of the new Board are:

John Stratton, Executive Chairman: Former Executive Vice President and President of Global Operations of Verizon Communications.

Kevin Beebe, Independent Director: Founding Partner of Astra Capital Management and President and Chief Executive Officer of 2B Partners, LLC.

Lisa Chang, Independent Director: Senior Vice President and Global Chief People Officer of The Coca-Cola Company.

Pamela Coe, Independent Director: Former Senior Vice President, Deputy General Counsel and Corporate Secretary of Liberty Media Corporation.

Nick Jeffery, Director: President and Chief Executive Officer of Frontier Communications.

Stephen Pusey, Independent Director: Senior Advisor to Bridge Growth Partners and former Chief Technology Officer of Vodafone.

Maryann Turcke, Independent Director: Senior Advisor to the Infrastructure Division for Brookfield Asset Management and former Chief Operating Officer of the National Football League.

Pratabkumar “Prat” Vemana, Independent Director: Senior Vice President and Chief Digital Officer of Kaiser Foundation Health Plans and Hospitals (Kaiser Permanente).

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