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Windstream—an Internet service provider in mainly rural areas—today filed for bankruptcy.
The bankruptcy was spurred by a court ruling from February 15 that could cost Windstream hundreds of millions of dollars. The company said the bankruptcy will help prevent negative impacts on customers.
Windstream filed petitions for reorganization under Chapter 11 of the United States Bankruptcy Code in US Bankruptcy Court for the Southern District of New York. Windstream considered other options, including appealing the court ruling, but company management and the board of directors “determined that filing for voluntary Chapter 11 protection is a necessary step to address the financial impact of Judge [Jesse] Furman’s decision and the impact it would have on consumers and businesses across the states in which we operate,” Windstream CEO Tony Thomas said in the bankruptcy announcement.
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Source: Ars Technica – Windstream, ISP with 1 million customers, files for bankruptcy