One of Newtown’s largest telecommunication providers, Frontier Communications has declared bankruptcy. The Norwalk-based company made the announcement Wednesday, after filing the necessary documents Tuesday, April 14, in US bankruptcy court for the southern district of New York.

The internet, TV, and telephone service provider with thousands of Newtown customers has filed for federal bankruptcy protection and will implement a restructuring plan to reduce its debt by more than $10 billion, according to the Associated Press. The filing will allow the company to reorganize its finances while business operations continue.

The news came less than a week after State Attorney General William Tong and Consumer Protection Commissioner Michelle H. Seagull announced an investigation into Frontier following consumer complaints regarding excessive charges, poor service quality, and unsatisfactory customer service that began after Frontier acquired Southern New England Telephone Company (SNET) in 2014.

Since June 2015, the Office of the Attorney General (OAG) and Department of Consumer Protection (DCP) have jointly received over 1,000 consumer complaints regarding Frontier. Those include complaints involving charges for equipment already returned; poor voice, video, and internet quality; unsatisfactory customer service, charges that exceeded promised rates, and charges that continued after services had been canceled.

The OAG and DCP have issued a civil investigative demand seeking comprehensive records regarding customer complaints, including contracts, correspondence, and billing records to determine whether Frontier’s actions have violated the Connecticut Unfair Trade Practices Act. Should violations of law be identified, Frontier could be required to pay fines and comply with other injunctive relief to protect consumers.

Attorney General Tong said that "a steady onslaught of consumer complaints ranging from poor service quality and customer service to improper charges and excessive rates" has been seen since Frontier took over SNET.

“Jointly with DCP, we are seeking comprehensive records from Frontier regarding their customer complaints to determine whether the company may have violated the Connecticut Unfair Trade Practices Act,” Tong continued. “Frontier made promises to Connecticut that they had the ability to provide safe, adequate, and reliable service, and they need to live up to that promise now.”

Consumer Protection Commissioner Michelle H. Seagull said it is important that consumers and families get what they pay for, "especially when it comes to utilities like internet access that are increasingly important in everyday life.

“Like the Office of the Attorney General, we have had a steady stream of complaints about issues with Frontier, and I am pleased that we are taking this next step in our investigation," Seagull said. "I want to thank the staff at DCP and the Office of the Attorney General who have put so many hours of hard work into this effort.”

Marissa Paslick Gillett, chairwoman of the Connecticut Public Utilities Regulatory Authority (PURA), said her agency support's the attorney general's effort to protect consumers of telecommunications and video services in the state.

"The AG’s investigation into certain consumer complaints arising from The Southern New England Telephone Company d/b/a Frontier Communications of Connecticut (“Frontier”)’s competitive services is critical to maintaining a level, consumer-friendly playing field,” said . “PURA expects a cooperative investigation and encourages Frontier to resolve any consumer protection issues identified in an expedient manner.”

Skipped Interest Bills

Three weeks earlier, Bloomberg reported that Frontier was skipping interest bills due March 16, putting the debt-laden phone and broadband network on course for a default and a potential bankruptcy. The omission affects some of it senior unsecured notes, Frontier said in a statement.

More than $320 million was scheduled to be paid, according to Bloomberg data.

The financial news outlet said if and when it happened, a Frontier bankruptcy “would rank as one of the biggest telecom reorganizations since Worldcom Inc in 2002.” All told, Bloomberg reported that Frontier has about $17.5 billion in debt outstanding, and it currently ranks as the biggest North American issuer of distressed debt, according to Bloomberg Intelligence.

Frontier said it will be able to meet its ongoing obligations and that the debt-reducing proposal is backed by the company’s bondholders.

A press release from Communications Workers of America, the union representing Frontier workers, said the bankruptcy filing, “while not surprising, is disappointing.”

It went on to say that “Frontier’s front-line employees have a unique insight into the challenges — and opportunities — that the company faces. Unfortunately, Frontier’s management did not engage with CWA members or leadership as part of their negotiations with creditors, denying their workforce a much-needed voice in the future of the company. CWA members expect to have input in the direction of the company as the bankruptcy process goes forward.

“The need for high-speed, reliable communications services is more evident now than ever before,” the CWA statement continued. “Our position has been clear — Frontier needs the debt relief and financial flexibility to invest in its network and its employees, so that it can provide the service that its customers want and deserve.

"We call on Frontier and its creditors to work quickly to put Frontier on a strong financial footing and prioritize the long-term gains that will come from investment in Frontier’s network over extracting cash from the company for short-term profit.”

Frontier President and CEO Bernie Han said in a statement that under the agreement, "We can now focus on executing our strategy to drive operational efficiencies and position our business for long-term growth.”

Frontier said it has more than $700 million cash on hand and has received commitments for $460 million in debtor-in-possession financing.

Frontier, which has operations in 29 states, said it intends to proceed with the sale of its Washington, Oregon, Idaho, and Montana operations and assets to Northwest Fiber for $1.35 billion in cash.

Associated Press content was used in this report.