Banks Give FairPoint A Break, But Ch. 11 Still Looms

Law360, New York (September 29, 2009, 12:51 PM EDT) -- Debt-ridden telephone company FairPoint Communications Inc. has announced it has entered into negotiations with bank lenders in an effort to permanently trim back its debt load and avoid Chapter 11, but made no guarantees that the bid to avoid bankruptcy will be a success.

FairPoint has reached a forbearance agreement with holders of more than 50 percent of the loans and commitments under its outstanding credit facility, the company said in a statement Monday

The forbearance agreement will allow FairPoint to skip principal and interest payments...
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