JANUARY 24, 2011 -- FairPoint Communications, Inc. has emerged from Chapter 11 bankruptcy with what it called “significantly lower debt.”
The U.S. Bankruptcy Court for the Southern District of New York confirmed the Fairpoint’s reorganization plan on January 13, 2011. The plan became effective and was substantially consummated on January 24, 2011. The Federal Communications Commission and the public utilities commissions in all required states in which the Company operates have provided the requisite approvals as well.
As a result of the restructuring, FairPoint has reduced its outstanding debt by approximately 64 percent, from approximately $2.8 billion (including interest rate swap liabilities and accrued interest) to approximately $1.0 billion. In addition, the company has a $75 million revolving credit facility available for working capital and general corporate purposes.
In connection with company’s restructuring, the Fairpoint announced a new board of directors whose members include Edward D. Horowitz (chairman), Todd Arden, Dennis J. Austin, Michael J. Mahoney, Michael K. Robinson, Paul H. Sunu (CEO), David Treadwell. and Wayne Wilson.
FairPoint has received approval to list its common stock with the Nasdaq Stock Market and has reserved the ticker symbol FRP. Trading is expected to begin soon. Holders of shares of FairPoint's old common stock will not receive or retain any distribution under the plan. Old common stock, which until recently traded over-the-counter under the ticker FRCMQ, was cancelled and does not convert into new common stock.
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