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FairPoint plan would slash debt by two-thirds

Mon, 02/08/2010 - 7:05am
Clarke Canfield, The Associated Press

PORTLAND, Maine (AP) – The debt load of telecommunications provider FairPoint Communications Inc. will be cut by nearly two-thirds under its bankruptcy reorganization plan.

The document filed Monday calls for FairPoint's debt to be reduced to about $1 billion from nearly $2.8 billion.

It says secured creditors will receive a 92 percent ownership stake in the restructured company. Unsecured creditors will be paid 17 cents for each dollar they're owed.

FairPoint CEO David Hauser said the plan will make FairPoint a strong company going forward.

North Carolina-based FairPoint paid $2.3 billion for Verizon Communications' landline and Internet operations in Maine, New Hampshire and Vermont in 2008. It sought Chapter 11 bankruptcy protection in October.

More Broadband Direct 2/08/10:
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•  Broadcom has integrated DTA chip
•  BelAir Networks adds DOCSIS 3.0 into Wi-Fi
•  OPEN MIC: Raising the Summit
•  Rovi to add FourthWall's EBIF widgets 
•  Pacific Northwest signs on for RCN Metro's Ethernet service
•  Dish Network, Rentrak ink TV audience agreement
•  FCC: Heavy traffic ahead
•  FairPoint plan would slash debt by two-thirds
•  Broadband Briefs for 02/08/10

 

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