FairPoint ends dividend, says liquidity is hurt Reuters and others are reporting that FairPoint Communications Inc has suspended its quarterly dividend and said its transition to a new billing platform could hurt liquidity in the first half of 2009, sending its shares down 9 percent. The rural telecommunications provider said the transition to the new billing platform that began in January has resulted in the delay of certain billing cycles.
The company said on March 4 its Board decided to suspend its quarterly dividend, a move which will help save about $93 million annually.
Fairpoint reported a fourth-quarter loss of 85 cents a share, compared with a loss of 11 cents a year ago.
It increased its total capital expenditure forecast for 2009 by $10 million to $190 to $210 million.
FairPoint shares fell to $1.45 in after-the-bell trade. They closed at $1.60 Thursday on the New York Stock Exchange.
The stock has shed 78 percent of its value in the last six months.