FairPoint reshuffles debt
FairPoint Communications announced yesterday it is restructuring its debt to avoid bankruptcy, just as the company prepares to appear before state regulators today.
Bob Froberg, senior director of sales in Maine for the North Carolina-based company, told a rotary club yesterday that FairPoint is working with its bondholders to convert some of its more than $500 million in debt into equity, according to the Morning Sentinel. The company has hired British investment-banking firm Rothschild to help with the restructuring efforts, which will extend the telecommunications company's debt for an additional 10 years. Last month, FairPoint said it might have to file for bankruptcy if its lenders did not agree to postpone interest payments due on $531 million in loans.
In related news, FairPoint is scheduled today to go before the Maine Public Utilities Commission to discuss the company's request for a waiver of more than $845,000 in fines for poor wholesale service, according to the Associated Press. FairPoint owes nearly $3 million in penalties to phone carriers in New England for poor service.
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