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February 10, 2010

FairPoint ordered to rebate customers

The U.S. Bankruptcy Court has ordered FairPoint Communications to begin paying rebates to customers in March to compensate for poor service.

A bankruptcy court judge Tuesday approved the order to force FairPoint to pay rebates of $1.72 a line per month for one year, a total of more than $8 million, the Maine Public Utilities Commission announced. The PUC ordered the rebates in November, but they were delayed after FairPoint filed a motion requesting not to pay while developing its bankruptcy plan.

The North Carolina-based company submitted its restructuring plan Monday.

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