Bloomberg, among others, is reporting that Windstream, the Little Rock-based communications company, is preparing to file for bankruptcy.  UPDATE: They have indeed made a voluntary bankruptcy filing.

The company has been in a legal dispute with a hedge fund over the sale of an asset. A court judgment, in that case, raises questions about other company debt obligations.

News coverage doesn’t indicate what impact filing for protection from creditors might have on operations of the company, which operates in 18 states and whose services include rural telephone service. It was formed in 2006 as a spinoff of the former Alltel’s landline business.

UPDATE: The company’s release said in part:

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Taking this proactive step will ensure that Windstream has access to the capital and resources we need to continue building on Windstream’s strong operational momentum while we engage in constructive discussions with our creditors regarding the terms of a consensual plan of reorganization.