FairPoint files bankruptcy plan
After two months of delays, FairPoint Communications Inc. filed its bankruptcy reorganization plan today in U.S. Bankruptcy Court in New York, according to the Associated Press.
The North Carolina-based company was originally due to file its plan in December, but delayed the filing three times, citing a need to negotiate with lenders and unions. The restructuring plan would reduce FairPoint's debt load by nearly two-thirds, from nearly $2.8 billion to $1 billion, and would give secured creditors a 92% ownership stake in the restructured company. Unsecured creditors would be paid 17 cents for every dollar they're owed.
FairPoint, which purchased Verizon's northern New England landlines in 2008, filed for bankruptcy in October 2009. Last week, the telecommunications company reached a tentative accord with two unions that represent more than 75% of its employees.
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