FairPoint files for Chapter 11
FairPoint Communications filed for Chapter 11 bankruptcy protection today after reaching a deal with lenders that would cut the company's debt by $1.7 billion.
North Carolina-based FairPoint reached the restructuring agreement, which is subject to bankruptcy court approval, with lenders holding more than 50% of its outstanding secured debt, according to a company press release. FairPoint expects to continue normal operations in the meantime, with help from a $75 million debtor-in-possession loan. In its Chapter 11 filing, the company listed total assets of $3.24 billion and debt of $3.23 billion.
Fairpoint owns and operates phone companies in 18 states, with the largest holdings in northern New England. The company bought Verizon's landline and Internet services in Maine, New Hampshire and Vermont last year for $2.3 billion. Just last week, FairPoint asked its 3,000 union employees in northern New England to accept pay cuts and other concessions in an effort to avoid bankruptcy.
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