FairPoint Hopes To Delay $11 Million Debt Payment CEO does what CEOs do: remains optimistic Tipped by Dominokat 
Evidence would suggest that Fairpoint Communications, who recently acquired Verizon's DSL and landline networks in Maine, New Hampshire and Vermont, is struggling financially with their new obligations -- much like many (particularly unions and regulators) worried they would. The company, which says it has had trouble with an order backlog since taking over, recently suspended a quarterly dividend in order to save cash. Now according to the Portland Press Herald, they're asking Maine utility regulators if it can hold off on a $11.25 million debt payment due at the end of March. Fairpoint CEO Gene Johnson is optimistic (as if CEOs are ever anything else) that the company's financial fortunes should stabilize by summer. The carrier posted a fourth quarter loss of $76.1 million, or 85 cents per share.
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  SteveConIBEW 2222 Boston, MAPremium
join:2004-09-02
Boston, MA | Say it isn't so.. Does this come as a surprise to anyone, really?? | |
|  | | | Re: Say it isn't so.. said by SteveCon:Does this come as a surprise to anyone, really?? What that one company is having problems integrating another's units inside of it, of course not. | |
| |  morboComplete Your Transaction
join:2002-01-22
00000 | said by SteveCon:Does this come as a surprise to anyone, really?? no. it was predicted by everyone. | |
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| | My best guess... Is the company will have to file for Chapter 11, which will allow them to restructure their debt. In the end, you will most like see a merger come from this, possibly with Centurytel/Embarq outfit. | |
| | Reviews:
 ·WOW Internet and..
| Re: My best guess... doubt it. they'll come back if they file for Chp. 11. they'll only go that far to get rid of some of their contracts.
If they were smart they'd get rid of their ISP side and outsource it so some other company- would shed a lot of debt and still keep jobs in this country if the used a company that kept jobs here. | |
| |  n2jtx
join:2001-01-13
Glen Head, NY
·Optimum Online
| If they declare bankruptcy, maybe Verizon can buy them at fire sale prices. That way they keep the money they already got, the tax breaks they got and wind up with all the infrastructure in their portfolio again.
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I support the right to keep and arm bears. | |
| | | Reviews:
 ·Verizon FiOS
| Re: My best guess... Hence the name FailPoint.
Alas, a relative is mired in their FAILure to pay overtime. They have employees working extra hours, under an "emergency" clause.
Where's that "pudding" now, oh Southern leader?
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Weeeeeeee! | |
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| | | If that happens, it will be the best news for people up there since sliced bread. My website partner lives up there and the broadband situation is dire. once you get out of the cities and a few towns, there is nothing but sat and in a snowy clime like that, tree-filled as well, things are not optimal, to say the least.
Also, at his office, which has DSL, the connection is up, down and all around. The problems sound, to me like DNS or DHCP issues, or exhaust on a rather grand scale.
If where I was, yesterday, in the Poconos, setting up a wireless home network, can have both DSL and cable(Bubba, this was the WILDS. Deer in people's yards. Bears a common occurence. Re-fargin'-MOTE.), them folks in VT can have HSI too. It's just a matter of will. And some state legislative effort, methinks. | |
| | |  PaulgDisplaced YooperPremium
join:2004-03-15
Neenah, WI
kudos:1 | Re: My best guess... Wow, you don't get out of the city much do ya?
I see deer, bear, raccoons, grouse, etc. in my yard all the time, and I'm not in an area even close to remote. | |
| | | | Ahrenl
join:2004-10-26
North Andover, MA | Re: My best guess... Northern and central NH, VT, and ME ARE remote. There are some pretty remote places in MI too. That being said, I'm 20min's outside of Boston and I've seen packs of deer running through our neighborhood, so that certainly doesn't qualify a place as remote. | |
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| | One Success At least the few payphones left say Fairpoint now. Another success for Maine and the bald midget in disgusta. | |
| | |  mouseferatuToo many cats, Too many micePremium,MVM
join:2004-03-16
Im not sure
kudos:3 | Re: Buyout I am with you... I am not expecting to see Verizon back in the mix anytime soon- the management wanted out of here badly.
The PUC's of all three states are as much to blame for this mess as FairPoint- they only heard what they wanted to hear, and the open hearings that they held were, IMO, pretty much a joke.
I went to most of 'em in ME and NH, and they failed to adequately address the fact that FairPoint was ill equipped to manage an acquisition the size of this one.
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"Do not meddle in the affairs of dragons, for thou art crispy and good with catsup." | |
| | Reviews:
 ·Verizon Wireless..
| I really dont think you will see a buyout. After all the aconomy in the dumps and Verizon's investers are happy they are hanging on due to FIOS? Or should I say the money they just got from dumping New England. If it wasnt profitable for Verizon and a economy in the dumps it wont be untill things get better before Fairpoint will make a go of this. | |
| | | bac522
join:2003-08-04
Manchester, NH | Re: Buyout NH was profitable for Verizon, hence the reason they put quite a bit of FIOS here, it was ME and VT they wanted to dump, but Fairpoint knew they couldn't make a dime in those states and told Verizon no deal unless NH was part of the sale. Ultimately it is the PUC's of all three states that should be held responsible for this mess.
Chapter 11 is a good thing for the company filing because you get to pretty much wipe out a ton of dept for next to nothing, but clearly it's a very very bad thing for their creditors. | |
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| |  I think it goes more like this
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| | Timmn
join:2000-04-23
Tinley Park, IL | Re: I think it goes more like this If that's the case, why isn't Verison selling off all their areas where they still have copper? They still have copper in parts of Illinois and Indiana, but I haven't seen any stories about them being up for sale. | |
| | | | well, I asked my father (Retired verizon 30+ years) and his opinion was that there are still areas of the country that are still "copper profitable", like most of the major city's and more populated states. The Withdrawal from the payphone market was the first step(as everyone has cell phones and payphones need Maintained and resources, then the rural lest profitable states are sold off. Over time as copper becomes less profitable and labor agreements re-new among other things, it will be a gradual Withdrawal. I imagine in ten years Verizon will be more like a cable company, which may be good for us. Competition is always nice. The only question remains is what are the legions of Telco workers going to do? Can they all be used to maintain a fiber network?
Another point should be made, Verizon's work force is a well paid unionized labor force, most cable companies are not. This may be the "tripwire" that keeps costs up for verizon and us.
If I were Verizon, I'd buy out Vodaphone's interest in the wireless segment, solidify the companies position as the top notch UBER PROVIDER in the nation introduce competitive pricing for everything and just crush the hell out of cable. They deserve it.  | |
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| | reply Hello Fairpoint:
Enclosed is my monthly bill. You'll notice I have not included a payment. In these challenging economic times I am requesting that you delay my due date for an undefined period of time. Naturally, I expect no change to my service.
Thank you for your anticipated cooperation. | |
| | | Can we delay payment too? Hello Fairpoint:
Enclosed is my monthly bill. You'll notice I have not included a payment. In these challenging economic times I am requesting that you delay my due date for an undefined period of time. Naturally, I expect no change to my service.
Thank you for your anticipated cooperation. | |
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