The fate of Windstream Holdings Inc. was cast into doubt after a court ruled that the rural phone company defaulted on its bonds in 2015 by spinning off Uniti Group Inc. Windstream shares fell as much as 43 percent in extended trading, Bloomberg News reported. The ruling on Friday in Manhattan federal court is a victory for New York hedge fund Aurelius Capital Management LP, which contends that the deal unfairly stripped bondholders of assets that back up their investment. Windstream, which serves about 1.4 million consumers and small businesses in 18 states, has warned that a defeat could force it to seek bankruptcy protection or liquidation. Actions by the company’s Windstream Services unit breached covenants of bonds it issued, and Aurelius is entitled to a $310 million judgment, Judge Jesse Furman said in the decision. Little Rock, Arkansas-based Windstream said in a statement that it was pursuing options including an appeal.
