US Bank NA, the named defendant in a Delaware Chancery Court lawsuit filed by Windstream Services last week, shifted the case to the US District Court in Delaware this afternoon, court filings show.
The case will now proceed under the caption Windstream Services, LLC v. US Bank National Association, number 1:17-cv-01389. US Bank has not yet responded to the substance of the complaint, but filed a motion to dismiss the suit for lack of personal jurisdiction.
US Bank is indenture trustee for Windstream’s 6.375% senior notes due 2023. Last Friday (29 September), Windstream filed its suit in the Chancery court in an attempt to block the “opportunistic and improper actions of an activist hedge fund, Aurelius Capital Master Ltd,” which it accused of orchestrating a campaign to force the Little Rock, Arkansas-based telecom into bankruptcy.
Under the indenture, Windstream and US Bank consented to jurisdiction in New York and agreed that disputes would be governed by New York law, in a New York court, US Bank said in its motion to dismiss the suit. US Bank is not a Delaware resident, and Delaware’s “long-arm” statute does not apply, the bank said.
ISDA’s Determinations Committee unanimously agreed today that a failure to pay credit event did not occur with respect to Windstream.
The original Chancery case is Windstream Services LLC v. US Bank National Association, as Indenture Trustee, number 2017-0693, in the Court of Chancery in the State of Delaware.
CLICK HERE to view the motion to dismiss.
CLICK HERE to view the notice of removal.
CLICK HERE to view Windstream’s complaint.
CLICK HERE to view the exhibits, including the notice of default.
CLICK HERE to view the motion for preliminary injunction.