«Windstream categorically challenges Judge Furman`s decision,» said Tony Thomas, Windstream`s President and CEO. «The company believes that Aurelius has conducted predatory market manipulations to increase its own financial position through credit risk swaps at the expense of thousands of shareholders, lenders, employees, customers, sellers and business partners. Windstream supports its decision to defend itself and block Aurelius` tactics in court. The time has come for regulators to carefully consider the effects of an unregulated position in the credit risk swap market. «After a thorough review of our options, including a complaint, the Board of Directors and the management team have found that the filing of Chapter 11 voluntary protection is a necessary step in addressing the financial impact of Judge Furman`s decision and the impact on consumers and businesses in the states where we operate,» Thomas said. «This proactive approach will provide Windstream with access to the capital and resources we need to continue to build on strong operational momentum as we enter into constructive discussions with our creditors on the terms of a consensual turnaround plan. We have acted decisively to ensure Windstream`s long-term financial stability and are confident that once the reorganization process is complete, we will be even better able to invest in our business, increase our speed and skills for our customers and compete for the long term. As announced on February 15, 2019, Furman J. ruled that Windstream Services, LLC`s 2015 split of certain telecommunications networks into a real estate investment trust (REIT) was contrary to its agreements with bondholders. The decision was made on the basis of challenges by Aurelius Capital Management («Aurelius») and the U.S. Bank National Association, which stated that the outsourcing was not valid under the terms of these agreements. Furman J.`s decision resulted in a delayed event occurring after the corresponding move,, which was not cured or cancelled.