Windstream Holdings (WIN -3.1%) would assume its master lease agreement with Uniti Group (UNIT -0.8%) and would probably keep making payments if it loses its trial against Aurelius and files for bankruptcy, CreditSights now says.
The difference comes in Windstream curing any defaults and providing assurance of future performance if it assumes the lease, according to CreditSights. If it rejected the lease, Uniti would be entitled to pursue damages as an unsecured creditor.
CreditSights' base scenario has Windstream prevailing in the Aurelius trial, however.
Asked this week why a decision in the case is taking so long -- observers have now been waiting five months -- Windstream CFO Bob Gunderman said he didn't have a timetable as the case is being handled by Judge Jesse Furman, who's currently handling the Trump administration 2020 census question issue.
Windstream is waiting for a verdict before refinancing near-term debt.
Source: Bloomberg