Frontier Seeks Streamlined Reorganization Review at CPUC
The California Public Utilities Commission may take the rest of 2020 to review the Frontier Communications bankruptcy reorganization. Under Wednesday's scoping memo by Commissioner Martha Guzman Aceves, the agency would hold events in September or October, with opening briefs due…
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Nov. 18, replies Dec. 10. The memo noted that statute requires the proceeding be resolved within 18 months. The CPUC needn’t consider some elements of a typical transfer-of-control review, but others are fair game, it said. “The primary issue in this proceeding is whether ... the Restructuring is in California’s public interest.” Issues include economic benefits to ratepayers, changes to Frontier’s management, financial condition and service quality, impact to employees, and effect on prices and network spending, the memo said. The telco sought expedited review. The planned restructuring is a parent company ownership change that won’t harm consumers and has “unquestionable” benefits, said Frontier Chief Legal Officer Mark Nielsen in testimony emailed Tuesday to the A.20-05-010 service list. “The longer the Applicants remain in Chapter 11, the more resources and expenses they will have to expend in support of the bankruptcy process.” The CPUC needn’t do a typical transfer-of-control review because it’s “not a purchase or a merger transaction,” he said. Frontier's reorganization plan "is progressing as expected and we will continue to respond as needed to move the approval process forward expeditiously for Frontier’s change of control applications," a spokesperson said Wednesday. Frontier got OKs from Nevada, Nebraska and South Carolina.