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June 1, 2010

Court: FairPoint can pay state legal fees

A New York bankruptcy court has agreed that FairPoint Communications can pay the Maine Public Utilities Commission and the Public Advocate's Office more than $600,000 in outside legal fees the state agencies incurred while representing consumers in the FairPoint bankruptcy case.

Public Advocate Richard Davies told Capitol News Service the New York bankruptcy court has not objected to FairPoint covering the state offices' costs during the case, and that the arrangement is similar to others found in bankruptcy hearings. In April, it was reported that FairPoint, the PUC and the Public Advocate's Office had signed an agreement to allow the telecommunications company to reimburse the state for its legal fees, pending approval from the court.

Washington, D.C.-based Arent Fox LLP, the advocate office's law firm, has agreed to hold off seeking payment for its fees until the bankruptcy process has finished and FairPoint has paid the Public Advocate's Office for the legal fees.

Go to the article from Capitol News Service >>

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