Item 8.01 Other Information
On June 29, 2020, Frontier Communications Corporation ("Frontier" or the
"Company") notified employees that it intends to file an application with the
Internal Revenue Service for a waiver of the minimum funding standard under
Section 412(c) of the Internal Revenue Code and Section 302(c) of the Employee
Retirement Income Security Act of 1974 for the Frontier Communications Pension
Plan (the "Plan") for the Plan year beginning January 1, 2020. Frontier's
minimum funding obligation for 2020 has been determined by its actuaries to be
approximately $195.8 million. If the waiver is granted, Frontier would amortize
the full 2020 contribution with interest over the five subsequent Plan years.
However, there can be no assurance that the waiver will be granted.
As previously disclosed, on April 14, 2020, Frontier and all of its direct and
indirect subsidiaries filed voluntary petitions under chapter 11 (the "Chapter
11 Cases") of title 11 of the United States Code in the United States Bankruptcy
Court for the Southern District of New York. Frontier continues to execute on
terms of the restructuring agreed to with the consenting noteholders as part of
the Chapter 11 Cases and believes that a funding waiver for the 2020 Plan year
will increase the Company's ability to execute on operational initiatives and
stabilize the business.
In addition, as disclosed in Frontier's Form 10-Q for the quarter ended
March 31, 2020, certain provisions of the CARES Act permit employers to postpone
making pension contributions due during 2020 until January 1, 2021. Even if the
waiver is not granted, Frontier intends to postpone the remaining contributions
due during 2020 as permitted by the CARES Act.
Cautionary Statements Regarding Forward-Looking Statements
This Current Report may contain "forward-looking statements" within the meaning
of the Private Securities Litigation Reform Act of 1995. All statements, other
than statements of historical facts, included in this filing that address
activities, events or developments that the Company expects, believes, targets
or anticipates will or may occur in the future are forward-looking statements
and are based on management's current expectations, beliefs, assumptions and
estimates. The Company's actual results may differ materially and adversely from
those expressed or implied in the forward-looking statements as a result of the
risk factors and cautionary language described from time to time in the
Company's most recent Annual Report on Form 10-K, the Company's Quarterly
Reports on Form 10-Q and the Company's Current Reports on Form 8-K, including
those risk factors associated with the Chapter 11 Cases. The Company has no
obligation to update or revise these forward-looking statements and does not
undertake to do so.
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