If you haven’t been following thew Windstream (WIN) drama, crap has hit the fan.

Windstream Holdings was 29.4% lower postmarket because the verdict is in: It’s lost its court fight with Aurelius.

The ruling says the court’s task wasn’t to opine on the financial wisdom of Windstream Services’ decisions in the transaction, but to enforce the indenture.

“Doing so here, the Court concludes that Services’ financial maneuvers — and many of its arguments here — are too cute by half,” the decision reads.

“That is, the 2015 Transaction qualifies as a Sale and Leaseback Transaction because, in substance, the Transferor Subsidiaries sold the Transferred Assets and then, either directly or indirectly, leased them back; making Holdings the sole signatory on the Master Lease did not change those facts.”

Shareholders have been awaiting a verdict in the case since last summer.

Now things are even worse and we expect more bleeding out of shares.
Windstream announced today it is postponing the release of the company’s fourth-quarter and full-year 2018 financial results following a federal judge’s ruling against one of its subsidiaries. The company previously announced its plans to release the results on Feb. 21.

We are bearish on the name.

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