FairPoint Files Reorganization Plan To Slash Debt

Law360, New York (February 8, 2010, 5:17 PM EST) -- Bankrupt telecommunications provider FairPoint Communications Inc. has filed a plan of reorganization that calls for slashing its $2.7 billion debt burden by about two-thirds to around $1 billion.

The reorganization would let the company convert about $1.7 billion from debt to equity and issue millions of new shares, according to the plan and a disclosure statement filed on Monday in the U.S. Bankruptcy Court for the Southern District of New York.

It also called for FairPoint to invest “more than $100 million over the next two...
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