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.