No. of Recommendations: 1

Clearly Frontier has had its issues (and frankly still has). This is a $1.1 Billion offering that looks like it has tendered its way down to $172 million over the years.

FTR looks like it should have the cash to redeem in full in 4.5 months when it is due. Does not mean that they will not file for protection before then. But if they have the cash, why not pay off this amount and still kick the can a bit while looking for solutions (asset sales, etc.) before the real big debts come due?

Was trading at 0.51 in mid-November. Now it trades around 0.62. I think that the market had priced in a restructuring, but every day one does not happen and it gets closer to April 15th, the value of this issue will keep creeping up. Clearly it is risky or it would not be priced in the sixties.

Other than a bankruptcy filing in the next 4 months, what other risk am I missing?

Can FTR be buying it back quietly on the open market to save money, or does that violate any covenants?
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