Bankrupt telecommunications provider Windstream Holdings Inc. reached a settlement with Uniti Group Inc., a company whose broadband network is crucial for Windstream’s operations, WSJ Pro Bankruptcy reported. Since last summer, the two companies have been locked in battle over the rent that Windstream pays for use of Uniti’s fiber-optic network — a fight that threatened to push Uniti into bankruptcy as well. The two companies declared the truce just ahead of a scheduled yesterday trial in the U.S. Bankruptcy Court in New York over whether Windstream could stop or reduce its $54 million monthly rent payments to Uniti. Under the settlement, which requires court approval, Uniti would pay Windstream $400 million in cash, plus interest, over 20 quarters, and it would purchase certain fiber assets from Windstream. Uniti also agreed to invest up to $1.75 billion to upgrade fiber networks used by Windstream through 2029. Windstream would continue paying rent at current levels for a year, with rents then increasing depending on annual capital spending by Uniti. Some Windstream lenders also agreed to purchase just over $244 million worth of Uniti shares as part of the deal.
