Windstream Holdings Inc. is now a private company, free from the bankruptcy court oversight that has governed operations since February 2019.
In June, the company received court approval to transition out of bankruptcy and President and Chief Executive Officer Tony Thomas said the company would exit bankruptcy in the summer. It succeeded, but just barely.
Monday was the last day of summer and the company announced it is no longer bound by the restraints of bankruptcy.
"Today marks the start of a new era for Windstream as an even stronger, more competitive company," Thomas said in a statement released late Monday.
The restructuring approved in federal bankruptcy court in June will reduce Windstream's debt by more than $4 billion, or approximately two-thirds. Windstream also will gain access to about $2 billion in new capital to enhance its product offerings.
"With the completion of our financial restructuring, we now have an enhanced balance sheet and a robust capital investment program to expand 1 gig Internet service in rural America and maintain our product and software leadership" for business customers, Thomas added.
"With the support of our new owners and current operational momentum, Windstream will continue advancing our long-term growth objectives while providing our customers with quality and reliable services."
Elliott Management Corp. will hold the largest ownership stake in the new Windstream at 40%. The private equity company based in New York bought Windstream's distressed debt in the bankruptcy process.
Exiting bankruptcy also will help another Little Rock company -- Uniti Group Inc., which negotiated a new long-term lease with Windstream during the bankruptcy process after a lawsuit over the arrangement. Uniti provides the network infrastructure Windstream needs to reach its customers.
"We are pleased that our previously announced settlement agreement with Windstream is now effective, and that Windstream has fully emerged from bankruptcy with a significantly deleveraged capital structure.," said Kenny Gunderman, Uniti's president and chief executive officer.
"This settlement achieves a mutually beneficial outcome for both Uniti and Windstream, while providing substantial strategic value for Uniti, including expanding its national fiber footprint and leasable capacity to third parties by approximately 90%."
To celebrate its new beginning, Windstream also unveiled a new logo that aligns with its three main operating segments: consumer broadband, business customers and wholesale customers.
Earlier this summer, Windstream announced a new board of directors that will be led by Chairman Paul Sunu, who was former chief executive officer of Fairpoint Communications.
"Tony and the Windstream team have made significant strides in the last 18 months to better position the company to compete for the long term," Sunu said Monday as part of the announcement. "The new board and I are confident that we have the right management team and right strategy to accelerate Windstream's transformation, return to growth and drive sustainable value creation."
Under the restructuring, Windstream no longer is a publicly traded company, a substantial change since the communications company has been public since its spinoff from Alltel Corp in 2006. The company joined the Fortune 500 list of the largest public companies in 2013.