Aurelius Capital Management LP is lobbying the board of Frontier Communications Corp. against putting the financially strained telecommunications giant into chapter 11 bankruptcy, WSJ Pro Bankruptcy reported. In a public letter on Wednesday to Frontier’s chief executive and board, Aurelius Managing Director Dennis Prieto said that Frontier should instead pursue an out-of-court debt swap, which would extend maturities on existing debt and lower interest payments. “We see no defensible basis for the company going into chapter 11 without first attempting the exchange/tender offer recommended in this letter,” he said. A spokesman for Frontier declined to comment Thursday. The company has nearly $17 billion in debt and is coping with cord-cutting consumers that have left it scrambling to delay the debt obligations that financed its expansion. Investors like Aurelius and GoldenTree Asset Management LP have been jockeying to influence Frontier’s restructuring tactics, pitting different bondholders against each other.
