Frontier Communications Corp. will skip interest payments to bondholders, starting a 60-day countdown before they can declare a default and potentially force a bankruptcy, WSJ Pro Bankruptcy reported. The Norwalk, Conn.-based telecommunications company said that it would defer making payments due today on some of its unsecured notes and enter a 60-day grace period as it “continues constructive discussions with its bondholders regarding Frontier’s capital structure.” Frontier said that it has been evaluating its capital structure with the aim of reducing debt and interest expense. Frontier accumulated its massive debt load pursuing an aggressive acquisition campaign that made it a national player in providing phone and internet services. The company has struggled to maintain its customer base amid fierce competition from other communications service providers. Frontier’s $3.6 billion in unsecured bonds that come due in 2025 last traded at 38 cents on the dollar on Friday, down by almost ten points over the past month. A $1.6 billion second-lien bond maturing in 2026 changed hands at 93 cents Monday, down from 96.25 cents the prior week, according to MarketAxess.
