Court OKs FairPoint Ch. 11 Plan Despite Verizon Worries

Law360, New York (January 13, 2011, 5:39 PM EST) -- A federal judge on Thursday confirmed FairPoint Communications Inc.’s Chapter 11 plan, overruling last-minute objections from Verizon Communications Inc. and opening the door for the company to emerge from bankruptcy.

Judge Burton Lifland of the U.S. Bankruptcy Court for the Southern District of New York signed off on FairPoint’s third amended reorganization plan, which provides for a $1 billion new term loan and $75 million in debtor-in-possession financing.

On the plan’s effective date, a reorganized FairPoint will issue 37.5 million shares of new common stock with...
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