Frontier Communications received a judge's stamp of approval for its bankruptcy exit financing on Wednesday. In the U.S. Bankruptcy Court for the Southern District of New York, Judge Robert Drain approved Frontier's bankruptcy exit financing after the motion was unopposed by other stakeholders, according to a story by Bloomberg (pay wall applies.)
Frontier had sought the court's approval for borrowing up to $5.9 billion across a term loan and new first-lien or second-lien notes to fund its emergence from bankruptcy. Frontier also sought to increase its debtor-in-possession (DIP) revolving credit facility from $460 million to $625 million, which was also approved by Judge Drain.
Frontier Communications filed for bankruptcy on April 14 to start a prearranged $10 billion debt-cutting proposal backed by its largest bondholders. Last month, the U.S. Bankruptcy Court for the Southern District of New York approved Frontier's plan for reorganization.
Earlier this month, Frontier Communications announced that former Verizon executive John Stratton would be the executive chairman of its board once the company emerges from Chapter 11. Frontier is targeting early next year for emerging from Chapter 11 bankruptcy.