This month, shares of regional US telco Frontier Communications began trading again after a 13-month stint in Chapter 11 bankruptcy. Frontier's latest results are middling. But the bankruptcy process has given the company a fair shot at reinvention.

Frontier offers phone and internet services over copper wire, a slowly decaying business in the era of mobile devices, cable television and broadband. At its peak in 2015, Frontier had a market capitalisation of more than $8bn. Over the next five years, total subscribers fell by a quarter and the equity became essentially worthless. Junior bondholders, largely distressed debt players, now own the stock after receiving about 50 cents on the dollar for their claims.

A court-supervised process means Frontier has wiped off more than $10bn from its previous $17bn of debt.

With a leaner balance sheet, it says it can revitalise itself as a provider of fibre internet. About half of revenue and profit in 2020 came from the copper business. But Frontier's equity value is about $6bn, according to the company's restructured share count. This is based on future fibre subscribers. Fibre penetration in the US is only about a third of households.

Frontier's challenge is finding its place in the market. In the first quarter, Frontier revenues fell by 6 per cent even though internet demand was elevated as a result of the pandemic.

Several companies like Frontier have listed their shares post-bankruptcy. Unsurprisingly, the "post-reorg equities" of oil and gas drillers have benefited from rising commodity prices. Frontier, in the midst of a pivot, does not quite have the same tailwind.

But shedding hundreds of millions of dollars in interest expense and shifting that cash towards the billions needed for growth capital expenditure is the best that Frontier can hope for.

• Frontier Communications Parent Inc