FairPoint files for Ch. 11 protection

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CHARLOTTE, N.C. — Telecommunications services provider FairPoint Communications Inc. said today it has filed for Chapter 11 bankruptcy protection after agreeing on a deal with key lenders that will help lower its debt by $1.7 billion.

Charlotte, N.C.-based Fairpoint said the restructuring plan with lenders holding more than half of its outstanding secured debt is subject to bankruptcy court approval.The company said it expects to continue operating as normal while awaiting that approval.

Last week, the governors of Maine, New Hampshire and Vermont said they want assurances from FairPoint that any debt restructuring by the company won't further erode customer service.
FairPoint owns and operates phone companies in 18 states with a total of 1.65 million lines, but its largest holdings are in Maine, New Hampshire and Vermont.

The company, which bought Verizon's land lines and Internet services for $2.3 billion in 2008, has been plagued with customer service and operational problems in those regions.

FairPoint said today it has about $46 million of cash on hand and expects to continue to generate positive operating cash flow.
Alfred Giammarino, chief financial officer and executive vice president, said the company is pleased with the terms of the agreement it reached with its lenders.

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The comments submitted by

Submitted by My Two Cents on Mon, 10/26/2009 - 20:31.

The comments submitted by Wyliegator are some of the most bogus thoughts I've ever read - why would a group of hard working Mainer's cut off their nose to spite their face. I'm sure all FairPoint employees would be jumping for joy right now if they'd been proven wrong. Do you really think people from Maine are so stupid that they would not work as hard as they could to do their jobs well and keep them. You should keep your out-of-state comments out-of-state - maybe that's how people operate where you come from but not around here buddy. It's very clear that you DO NOT GET THE WAY MAINE PEOPLE WORK.

Wyliegator you sound

Submitted by heres what i think on Mon, 10/26/2009 - 20:13.

Wyliegator you sound like....... I won't go there. You should re-read what you wrote.

Anyone reading your thoughts would wonder what your thought process is. Why in the world would you even insinuate that the then workers of Verizon who advocated against the sale of Verizon to FairPoint would do anything less than try to make whatever company they work for successful? Whether they work for Company A or Company B they have the exact same job to do - provide a level of customer service that retains customers and attracts new ones. IF they don;t do their job well - they don't have a job. HELLO - seems pretty simple to the rest of us but looks like you'll need a little hand holding to get the big picture here.

The then workers of Verizon protested against the sale becasue the had good information that FairPoint was ill equipped to take on the likes of the three states that they did end up acquiring. Once the sale was finalized, did you hear those same employees screaming, "We told you so!". No, that's right you didn't and you want to know why - becasue they were too busy trying to do their jobs! Too busy trying to save the company that had just purchased them from their own poor systems. Those same folks could use your support not your moronic and baseless insults.

Like I said, I know some of these people you refer to in your initial comment and I hope they are not bothered by what you say. I hope that this additional comment helps you to realize how insulting and unintelligent you come across.

This may be just a

Submitted by Harlan Bailey on Mon, 10/26/2009 - 18:33.

This may be just a coincidence but the Fairpoint Email web site is down.

I can't get any of my emails in outlook either.

First off, I do not live in

Submitted by Wyliegator on Mon, 10/26/2009 - 15:29.

First off, I do not live in Maine so Governer Baldacci is not my governor.

Secondly, after reading this ".....It was the workers who said FairPoint wasn't equipped to manage the telecommunications systems that existed under VErizon. And they were right." how dedicated or competently is someone going to try to do his/her job when they were against the deal from the beginning? They wouldn't look very intelligent having said it was going to fail and it not. It is akin to a self-fulfilling prophecy.

And lastly, I recommend anyone with basic math skills go to the U.S. Department of Labor web site and go to the Bureau of Labor Statistics. It is not difficult to see where jobs are being lost (present economical meltdown excluded....everyone is losing jobs) and where they are going.

The basic reason I wrote in the first place was in reply to Ladydiodes thinking that many got rich then got out and thinks that providing a half year of free service will make everything better.

I hope that they go after the

Submitted by Scott VerWey on Mon, 10/26/2009 - 15:21.

I hope that they go after the PUC who approved the sale. As the Verizon works told them Fairpoint was not able to handle the take over! So who did they pay off to get it approved?

How nice of our concerned

Submitted by heres what i think on Mon, 10/26/2009 - 13:36.

How nice of our concerned Governor to now ask for assurances from FairPoint....... give me a break - what does he take us for? He, together with the PUC, signed our telephone service over to FairPoint! Without their approval this NEVER would have happened - why isn't that the headline?

Too bad for the people who used to work for Verizon - they are on record, along with other community members and businesses who were very volcal about the fact that they knew FairPoint was not well positioned to make this purchase. Ahhhh - but who cares about the little guy, the small business, the family person trying to keep their job in a bad economy....... not Governor Baldacci. Instead of asking the company for assurances while they are moving through Chapter 11 (seriously!) - maybe you should have:

* listened to those constituents who elected you when they warned you repeatedly that this would happen;

* protected Maine telepcommunciations by protecting the people who work for (then Verizon) FairPoint

Moving forward - this should be a REAL lesson learned - Let us all be very hopeful that Governor Baldacci does not turn his back on the people of Maine like this again. Let us all pay attention to how he handles this situation for Maine customers. And let us all pay attention and see if Governor Baldacci does as much to protect the people who work for FairPoint as they tried to provide protection to him and ultimately all of Maine.

I know some of the "local"

Submitted by My Two Cents on Mon, 10/26/2009 - 13:09.

I know some of the "local" workers and they are also my neighbors - I don't typically comment on articles but will today because I am outraged at the comments of Wyliegator (who is clearly not well educated on the issue or the "local" work force for Fairpoint.)

If anyone is suprised by the Chapter 11 filing, and if ANYONE thinks that is was caused by the front line workers - they've been asleep since this deal was proposed. It was the workers who said FairPoint wasn't equipped to manage the telecommunications systems that existed under VErizon. And they were right - FairPoint systems have been a failure.

Let me point out to you Wyliegator - that while your Governor is now "looking for assurances from FairPoint" that customer service will not be further eroded by their ill prepared systems - it's those very "local" workers that are left to pick up the pieces for their neighbors and communities and make this company survive and successful again.

If you have a complaint about how this mess came to be - you should look squarely at Governor Baldacci and the Public Utilities Commission. They looked the other way when presented with the information they needed to prevent this from happening. They certainly were not worried about you, your neighbor or your community when they allowed this deal to go through. Further, you should thank those "local" workers for doing everything they can to make a very unfortunate situation work in the best possible way for the people of Maine.

Whenever a company files for

Submitted by Betty Davies on Mon, 10/26/2009 - 11:00.

Whenever a company files for bankrupcy based on inept decisions made by management, remember always to blame the workers--but ONLY if they belong to a union.

After all, no one needs to belong to a union! At least, you don't need a union as long as you trust your employer to treat you well, pay you a fair wage, not fire you unfairly, and so on.

Thus, joining with your co-workers to advocate for fair treatment has got to be a sign of laziness.

(Hoping the ani-union folks will recognize sarcasm when they see it...)

So now it is the "local"

Submitted by Andrea Cahill on Mon, 10/26/2009 - 10:20.

So now it is the "local" workers fault that Fairpoint is filing Chapter 11 Wyliegator?? Everyone knew this is what was going to happen from the beginning, Fairpoint was too small of a company to take over. Blame Verizon, they just sold to Fairpoint because of the tax breaks of selling to a small company and the PUC, enough people told them this would happen and they still let them come into the state.

Fairpoint going under faster

Submitted by mike mitchell on Mon, 10/26/2009 - 09:15.

Fairpoint going under faster than the Tintanic did.

Bottom of the barrel is

Submitted by Stephen Logan on Mon, 10/26/2009 - 09:02.

Bottom of the barrel is getting closer folks.

I would suggest you look at

Submitted by Wyliegator on Mon, 10/26/2009 - 08:28.

I would suggest you look at the "local" workers of this company and decide if you think your neighbors who are employed by Fairpoint have really been earning their keep or have they just been milking the union gravy train.

Now that the management has

Submitted by Ladydiodes on Mon, 10/26/2009 - 08:11.

Now that the management has been paid millions of dollars and left these states with the worst communications in the 21st century, they file for chapter 11. How about the courts directing Fairpoint to fix this mess and give all customers a 6-month free charge for all the trouble they have caused them.

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