Frontier Communications Corp.’s top lenders are signaling there could be a fight ahead of the telecommunications company’s bankruptcy-plan confirmation hearing later this summer, WSJ Pro Bankruptcy reported. Frontier’s senior and junior lenders say there are still substantial obstacles that remain to be addressed before the reorganization plan, initially filed in May, can be approved ahead of the Aug. 11 confirmation hearing. “There are significant confirmation issues remaining, but we’re willing to address those at confirmation,” Brian Hermann, a lawyer for a group of senior lenders, said Monday during a hearing held by phone with the U.S. Bankruptcy Court in White Plains, N.Y. The cautionary note from the lenders, whose loans are secured by liens on some of Frontier’s assets, came before Judge Robert Drain said that he would approve an updated version of the disclosure documents describing Frontier’s chapter 11 plan. The Norwalk, Conn., telecommunications company has proposed to reinstate the lenders’ debt or to repay them in full under its bondholder-backed bankruptcy-exit plan. Frontier has said only its shareholders and unsecured bondholders are sustaining financial damage under the proposed chapter 11 plan.
