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June 29, 2010

Vt. rejects FairPoint bankruptcy plan

By The Mainebiz News Staff

FairPoint Communications suffered a setback Monday to its plan to emerge from bankruptcy when the Vermont Public Service Board rejected the company's reorganization plan, less than a week after it was approved by Maine regulators.

Maine Public Broadcasting Network reported the Vermont panel rejected the plan because FairPoint officials did not present a strong enough case to back up future cost and revenue projections. Vermont regulators indicated they would be open to reviewing a revised plan, according to MPBN. The Associated Press reported the bankruptcy reorganization plan was backed by the administration of Vermont Gov. Jim Douglas and the state's Department of Public Service had agreed to support FairPoint's request in the plan to delay broadband expansion for six months.

Last week, the Maine Public Utilities Commission approved the bankruptcy plan as well as FairPoint's request to delay broadband expansion efforts in the state. FairPoint's reorganization plan is also being reviewed by the New Hampshire Public Utilities Commission. FairPoint officials told Mainebiz they hoped to gain approval from all three states before the company is scheduled to appear in U.S. Bankruptcy Court in New York in July, and to emerge from bankruptcy this fall.

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