The judge presiding over Windstream Holdings Inc.’s bankruptcy case approved a restructuring strategy that puts Elliott Management Corp. and other senior creditors in control of the business while extinguishing more than $4 billion in debt, WSJ Pro Bankruptcy reported. Judge Robert Drain of the U.S. Bankruptcy Court in White Plains, N.Y., confirmed the telecommunications company’s chapter 11 plan, which wipes out junior bondholders owed nearly $2.4 billion, converts some senior debt to equity and positions Elliott as Windstream’s largest shareholder. The judge’s ruling puts Windstream on a glide path to end a bankruptcy that began last year when Aurelius Capital Management LP won a lawsuit against the company, forcing a hurried chapter 11 filing. To cover the costs of exiting bankruptcy, Windstream has secured a commitment from Elliott and other lenders to supply $750 million in equity financing. They are taking ownership of 100 percent of Windstream under the chapter 11 plan, while unsecured creditors receive nothing.
