Creditors Fight Approval Of FairPoint DIP Loan

Law360, New York (December 7, 2009, 7:44 PM EST) -- Creditors of FairPoint Communications Inc. have objected to the company's proposed $75 million debtor-in-possession financing, which they say is designed to force a plan of reorganization favored by FairPoint and its prepetition lenders.

In a motion filed Friday in the U.S. Bankruptcy Court for the Southern District of New York, the official committee of unsecured creditors in FairPoint's bankruptcy objected to a provision in the DIP loan that would force the debtor to file a reorganization plan conforming to certain terms within 45 days of approval....
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