Search:  

 
theme to black backgroundlet page decide theme
HomeFind ServiceReviewsISP NewsFAQsForumsToolsDatabaseAbout 
 
   News
newer
story category Fairpoint Debt Holders Want Investigation
Argue that management has been, will be, incompetent
03:51PM Tuesday Nov 03 2009 by Karl Bode
tags: business · Fairpoint Communications
According to the Burlington Free Press, the bondholders of more than $600 million in FairPoint debt are pushing for an investigation into the company's management. According to the filing Fairpoint, which filed for bankruptcy last week, engaged in action that "reveal(s) a pattern of misrepresentation and questionable decision-making, which merit investigation by an independent third-party." "This Court should not buy into their 'we’ve got it right this time' approach to these Chapter 11 Cases," argues the filing. Fairpoint continues to insist that the restructuring of $2.7 billion in debt obligations should have no impact on residential or business service.

Related:
  1. Fairpoint Accused Of Faking Network Readiness Test
  2. Maine AG Drops Fake Fairpoint Test Investigation
  3. Fairpoint Will Miss Broadband Expansion Commitments
  4. Windstream Buying Up Fairpoint Debt?
  5. Fairpoint Files Chapter 11
  6. Fairpoint Owes About $619 Million
  7. Three States Approve Frontier Verizon Deal
  8. Oregon Regulators Not Thrilled With Frontier Deal
Forums » Fairpoint Debt Holders Want Investigation
view: topics flat text 
Post a:

TKJunkMail
Enjoy the sun
Premium
join:2002-03-03
Avalon, NJ
·Sprint Mobile Broa..
·Comcast

1 edit

Bankruptcy is always bad news for bond & stockholders

Contrary to what many here believe, bankruptcy is not just a way to screw over the customers and employees. It also results in massive losses for the bond & stockholders and often the firing of top mgt employees as well. So, it is hardly surprising that the bondholders want an investigation prior to a court ruling on the bankruptcy - banks would get 98% of the company, leaving the bondholders with virtually nothing(2%).

After the debt is restructured — wiping out $1.7 billion in debt — lenders will control the firm and FairPoint will remain $1 billion in debt. FairPoint has said it plans to transfer 98 percent of the company to the banks and 2 percent to bondholders
permalink · 2009-11-03 16:04:32 · Print · Reply to this
patcat88

join:2002-04-05
Jamaica, NY

Re: Bankruptcy is always bad news for bond & stockholders

said by TKJunkMail See Profile :

often the firing of top mgt employees as well.
In what world? Maybe 1 or 2 execs leave as a token, not every C exec. The whole point of "reorganization" instead of liquidation is that the current management knows what they are doing, they just need "help" from the government.
permalink · 2009-11-03 16:56:46 · Reply to this
patcat88

join:2002-04-05
Jamaica, NY

limited liability

Time to break »en.wikipedia.org/wiki/Piercing_t···ate_veil and hold all of the board of trustees criminally liable. If I start a company called Murder for Hire LLC, issue publicly traded stock, have a board of trustees, upper management, and have rank and file perform assassination for hire, it seems to be magically legal in the USA. Perhaps the Bloods and Crips should incorporate and become immuned to RICO.
permalink · 2009-11-03 16:41:25 · Reply to this

Mike
Premium,Mod
join:2000-09-17
Pittsburgh, PA
clubs:
·Verizon Online DSL

Host:
Site Tools
W.O.W.
FairPoint
World of Warcraft
Alltel Axcess
1 edit

Re: limited liability

No. The articles of incorporation would be illegal and denied by the state to incorporate.

There is also something called a void contract. Void contracts are contracts dealing with illegal acts.

Meaning you can't put hits out on people and don't make a deal with the mafia or complain you got ripped by to a cop by a crack dealer.

If your murder death kill inc whatever was a video game company, then that would be not denied on industry.

--
"If something about the human body disgusts you, complain to the manufacturer" - Lenny Bruce
What this country needs is a good five dollar plasma weapon.
permalink · 2009-11-03 17:28:20 · Print · Reply to this
joebarnhart
Paxio evangelist

join:2005-12-15
Santa Clara, CA

Re: limited liability

Wow, it's kinda scary that you'd know all that, Mike.

permalink · 2009-11-03 17:43:33 · Reply to this
Bob61571

join:2008-08-08
Washington, IL

Re: limited liability

If you take a Business Law course from a good professor....
permalink · 2009-11-03 19:58:08 · Reply to this

erniewitt

@cia.com

Who wins when Fairpoint goes bankrupt?

except that executives get golden parachutes, whereas everyone else gets nothing. So of course it doesn't matter if they declare bankruptcy or not.
permalink · 2009-11-03 23:34:09 · Reply to this

pnh102
Reptiles Are Cuddly And Pretty
Premium
join:2002-05-02
Mount Airy, MD

Shrug

Shouldn't these people have asked these questions before lending Fairpoint money? I smell another bailout.
--
Blagojevich / Madoff 2012!
permalink · 2009-11-04 07:06:49 · Reply to this
NOCTech75

join:2009-06-29
Marietta, GA

Re: Shrug

I agree although right now my company needs to get paid, we are owed a small sum by their debt standard but for us it's a good chunk of change. I'll take anything that gets us that money at this point.
permalink · 2009-11-04 16:32:45 · Reply to this
Forums » Fairpoint Debt Holders Want Investigation

Saturday, 21-Nov 23:40:42 Terms of Use | Privacy Policy | Hosting by www.nac.net - DSL,Hosting & Co-lo | feedback | contact
over 10 years online! © 1999-2009 dslreports.com.