FairPoint Communications (FRCMQ.PK) reached another milestone this week in its ongoing restructuring process as creditors and lenders pledged support for the service provider's Chapter 11 plan.
During a hearing held at the U.S. Bankruptcy Court in Manhattan, FairPoint said there weren't any major objections to its plan, which would effectively put the control of the company into its lenders' hands. "Although the court did not take any specific action at [Tuesday's] hearing, we were encouraged by the lack of material objections and the general consensus of support expressed by creditor groups," FairPoint spokeswoman Rose Cummings said Wednesday.
FairPoint needs to get regulatory approval in Maine, New Hampshire and Vermont because the reorganization plan shifts the control of the company.
So far, the Maine Public Utilities Commission (PUC) is the only state to have a hearing on the plan. In addition to its reorganization plan, the Maine PUC is evaluating FairPoint's request to delay the first phase of its broadband expansion plan and reducing the number of broadband-capable lines in New England regions by 3 percent.
- Total Telecom via Dow Jones has this article
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