FairPoint Files Reorganization Plan
February 8, 2010
FairPoint Communications, a Charlotte, N.C. telecommunications company that petitioned for bankruptcy protection in October 2009, filed its reorganization plan on Monday in New York's Southern District bankruptcy court.
The company has arranged for $75 million in debtor-in-possession financing from Bank of America Merrill Lynch to finance its daily business operations, according to its court filing.
Judge Burton Lifland is overseeing the case, filed under No. 09-16335.
FairPoint chief executive David Hauser launched the company's court-supervised restructuring in October. Back then, he said in a statement that the bankruptcy filing would "reduce [the company's] indebtedness, strengthen [its] financial condition and position FairPoint to compete more effectively in a dynamic marketplace.”
Under the reorganization plan, $1.1 billion of debt will be converted into equity, which will give FairPoint's lenders a majority interest in the business. In will also be left with a new $1 billion term loan under the terms of the reorganization plan.
Rothschild is serving as financial advisor to FairPoint, which is relying on AlixPartners for restructuring advice.
Paul Hastings Janofsky & Walker attorneys Luc Despins and James Grogan are serving as counsel to FairPoint.
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