FairPoint lays out its financial restructuring plan

FairPoint hopes that it will be able to see some light at the end of its bankruptcy tunnel, but when it does emerge much of the ILEC's ownership will be in the hands of the banks that currently hold major portions of its debt.

Under the reorganization plan, FairPoint hopes to eliminate $1.8 billion in debt, continue to expand broadband availability in its New England territory and reduce labor costs. A key concern amongst Northern New England consumers will be its ability to stick to its $100 million broadband build-out commitment.

But before FairPoint can proceed with its plan, the ILEC needs buy in from its creditors, the U.S. Bankruptcy Court for the Southern District of New York and state regulatory approvals.

During a conference call yesterday morning, David Hauser, FairPoint's CEO and chairman, said that unsecured creditors will get approximately 17 cents on the dollar mostly in stock.

Last week, FairPoint carved out a deal with local telephone unions to see where they could find new cost savings with annual raises from 2011 to 2013.   

For more:
- New Hampshire Union Leader has this article

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