Frontier Communications, a telecommunications service provider in Pennsylvania with an office in Dallas, is planning to file for bankruptcy within two months, according to Bloomberg and other national reports.
Javier Mendoza, vice president of corporate communications and external affairs for Frontier Communications, said Frontier is “evaluating its capital structure with an eye to reducing debt so as to be able to better serve our customers.”
“Frontier’s business and operations are solid, and serving our customers remains our top priority,” Mendoza said. “Customers should expect no changes as we remain focused on providing connectivity services without interruption to our residential customers, institutions and businesses.
“We are proud to continue to offer well-paying jobs and benefits that contribute to the economic health of the communities we serve.”
According to Bloomberg, Frontier is asking creditors to help craft a turnaround deal that includes filing for bankruptcy by the middle of March. It was unclear exactly what type of bankruptcy the company would be seeking.
Company executives including Bernie Han, Frontier’s new chief executive officer, recently met with creditors and advisers and told them the company wants to negotiate a prepackaged agreement before $356 million of debt payments come due March 15.
Frontier has 400 employees in more than 30 Pennsylvania locations, Mendoza said. He did not specifically say how many are employed in Dallas, where job cuts were announced in recent years.
The company provides communication services to business and residential sectors and is an integral player in the industry competing with giants like Verizon and AT&T.
Frontier provides service in 28 states in addition to Pennsylvania.
Amid the growing competition, Frontier Communications has been losing customers, reducing staff and reporting shrinking revenues for several years and ended September 2019 with $17.56 billion in debt.
According to national reports, Frontier had 19,132 employees nationwide as of Sept. 30, 2019, down from 21,375 one year earlier.