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story category FairPoint Hopes To Delay $11 Million Debt Payment
CEO does what CEOs do: remains optimistic
(old news - 03:07PM Friday Mar 13 2009)
tags: competition · coverage · business · telco · trouble
Tipped by Dominokat See Profile
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.

Related:
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  2. Verizon's Open Development Initiative? So Far It's A Joke
  3. Verizon Reports Largest FiOS Additions To Date
  4. FCC Greenlights Centurytel/Embarq With Wimpy Conditions
  5. Qwest: Remember How We Said Speed Didn't Matter? Forget That.
  6. Real Consumer Group Takes Aim At Fake Ones
  7. What Network Neutrality Is REALLY About
  8. Unions Blame Verizon For Fairpoint Disaster
Forums » FairPoint Hopes To Delay $11 Million Debt Payment
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SteveCon
IBEW 2222 Boston, MA
Premium
join:2004-09-02
Burlington, MA

Say it isn't so..

Does this come as a surprise to anyone, really??
cmaenginsb
Premium,MVM
join:2001-03-19
Palmdale, CA

Re: Say it isn't so..

said by SteveCon See Profile :

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.

morbo
Complete Your Transaction

join:2002-01-22
00000
clubs:
·Charter Pipeline
·AT&T Southwest

said by SteveCon See Profile :

Does this come as a surprise to anyone, really??
no. it was predicted by everyone.

Tarheels Fan
Premium
join:2006-01-05

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.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH
·Time Warner Cable
·buckeye cable

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.
--
I support the right to keep and arm bears.

cableties
Premium
join:2005-01-27
·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?
--
Weeeeeeee!

TScheisskopf
World News Trust

join:2005-02-13
Belvidere, NJ
·Sprint Broadband D..

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.

Paulg
Displaced Yooper
Premium
join:2004-03-15
Neenah, WI
clubs:

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
·Verizon FIOS

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.
jebba2005

join:2005-01-13
Portland, ME

One Success

At least the few payphones left say Fairpoint now. Another success for Maine and the bald midget in disgusta.
erikthebean

join:2007-06-25
Manchester, NH
·Comcast
·MV Communications,..
·Voipgo
·callwithus
·Callcentric

Buyout

I have a feeling they will file Ch 11 and a big ILEC like AT&T would buy them out. I HIGHLY doubt Verizon or A Century Tel would ever buy out FairPoint. To me the only Company other that Verizon that would make sense to buy out FairPoint would be AT&T. Besides they love DSL..Their U-Verse is a quasi (lack of a better work) DSL..We'll see what happens.

mouseferatu
Too many cats, Too many mice
Premium,MVM
join:2004-03-16
Im not sure
clubs:
·Verizon FIOS
·Fairpoint Communic..
·Comcast

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.
--
"Do not meddle in the affairs of dragons, for thou art crispy and good with catsup."

CaptainRR
Premium
join:2006-04-21
Blue Rock, OH

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.

War Dialer

@optonline.net

I think it goes more like this

Verizon is a smart company and knows where the wind is taking them. Copper is dead, and thank god as far as their concerned. Copper is a massive and expensive infrastructure to maintain, not to mention labor intensive. Its just not providing the revenue it once did. Don't forget about the masses who are dumping their traditional phone service for "tripple play packages" The sooner they sell off the copper infrastructure, the more they save and the more they can focus on the real revenue stream (FIOS) Its a shame too, copper is realiable and it F***ING WORKS!
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.

War Dialer

@optonline.net

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.

Jackhee

@myfairpoint.net

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.
mooseman

join:2007-11-28
·Verizon FIOS

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.
Forums » FairPoint Hopes To Delay $11 Million Debt Payment


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