FairPoint Communications files for bankruptcy
Bankruptcy
Rural telecom services provider FairPoint Communications Inc filed for Chapter 11 protection in a Manhattan bankruptcy court on Monday, under a pre-arranged plan that would cut its debt by $1.7 billion.
In a statement, the Charlotte, North Carolina-based company said the restructuring plan had the support of lenders holding more than 50 percent of the outstanding debt under its secured credit facility.
FairPoint has also received commitments for a $75 million debtor-in-possession (DIP) loan to continue operations while in bankruptcy.
"The day-to-day operations of our business will not be impacted by today's actions," Chief Executive David Hauser said.
In its Chapter 11 filing, the company listed total assets of about $3.24 billion and debt of about $3.23 billion.
FairPoint added that its annual interest expenses would be reduced from more than $200 million to about $65 million.
With about 1.7 million access line equivalents, FairPoint is the seventh largest local telephone company in the United States.
Related listings
-
Alleged victims, bankrupt diocese in U.S. court
Bankruptcy 10/22/2009The bankrupt Catholic Diocese of Wilmington began its court fight Wednesday withvictims claiming sexual abuse by its priests over the value of its estate and how much will be available for claims.Attorneys for most of the 142 victims indicated they m...
-
Dutch DSB bank declared bankrupt
Bankruptcy 10/19/2009A Dutch court declared DSB Bank NV bankrupt on Monday, ending hopes the regional lender, which suffered a run on deposits, might be sold or bailed out.The privately-owned bank is the first to go bust in the Netherlands since last year, though the gov...
-
Court approves Frontier reorganization
Bankruptcy 09/10/2009Frontier Airlines has received bankruptcy court approval of its reorganization plan, the Denver-based carrier announced today.The action by the U.S. Bankruptcy Court for the Southern District of New York is the last major hurdle before Frontier emerg...
New York Commercial Litigation Law Firm - Woods Lonergan PLLC
Founded in 1993 by Managing Partner James F. Woods, Woods Lonergan PLLC has built a strong reputation as a resourceful and industrious firm that provides clients with clear, concise, and straightforward answers to their most challenging legal issues. Partner Lawrence R. Lonergan, who joined the firm in 2008, has been a friend and colleague to Mr. Woods for over 40 years and shares the same business philosophy. Woods Lonergan PLLC’s collective experience and expertise enables the firm to expeditiously and effectively analyze the increasing challenges clients face in an evolving business and legal world, in many instances, avoiding unnecessary time and expense to our clients. Our mission is simple: provide cutting-edge expertise and sound advice in select areas of the law for corporate and business clients. We thrive on providing each client with personalized attention, forceful representation, and a collaborative team effort that embraces collective knowledge.