WIN - Windstream

[heth247]

This is a situation to keep an eye on.  It appears that WIN has had revenue growth for the past 2Qs but the interest expense is equal to EBITDA-Cap ex, so the situation is not sustainable.  We are going to have some sort of restructuring & in that situation who knows who gets what.  The seniority of the assets lease will not be enforced as it will be a negotiated settlement.  Unless I missed something, this is different from SHLD/Seritage and SHLD bondholders received compensation from Seritage versus that not being the case here.  I would wait here to see what plays out.  Just mu 2 cents.

 

Packer

 

Just want to bring this thread back to alive. Anybody (including Packer) still follow the WIN and UNITI (the previous CSAL) story? 

 

Basically WIN was forced into BK by hedge fund Aurelius for what they did in the spin off. And now WIN is trying to renegotiate the Master Lease with UNITI. From a legal point of view, WIN is standing at a weak point because they can only accept or reject the master lease. I think the play here is UNITI. If the master lease can stand with no cut, then UNITI will be at least a double.  Even if it is cut by e.g. $100M (from current $656M a year), UNITI's share price should still be higher than the current $8.5.  In addition, when WIN emerges from BK, it should be much stronger with much less debt, and more sustainable. What do you guys think?