FairPoint Wins Approval Of Ch. 11 Plan

Law360, New York (April 20, 2011, 10:51 PM EDT) -- Telecommunications company FairPoint Communications Inc. won appellate approval of its Chapter 11 reorganization plan in New York federal court Wednesday over Verizon Communications Inc.'s objections.

U.S. District Judge Colleen McMahon approved an injunction that stops Verizon from suing third parties that might turn around and sue FairPoint for indemnification.

“The question is whether the bankruptcy court had jurisdiction to enter such an injunction,” Judge McMahon said. “The answer is yes.”

Barring further appeal, the decision removes the final hurdle in FairPoint's struggle to shed $2.5 billion...
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