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Fairpoint Hints At Possible Bankruptcy
If 95% of bondholders don't agree to delayed debt payment...
by Karl Bode 12:44PM Friday Jun 26 2009
Fairpoint's problems in integrating Verizon's Maine, New Hampshire and Vermont DSL and landline networks continue, as the carrier is struggling to pay off the debt acquired from Verizon in the deal. This week FairPoint asked bond-holders that have more than $500 million worth of notes due in 2018 to accept delayed payments, and the company is offering to pay an extra quarter percent of the principle. In a filing with the SEC, the company warns that if more than 5% of bondholders don't take the deal, Fairpoint may not be able to meet debt obligations on October 1, potentially leading to "an alternative restructuring plan (that) may include a bankruptcy." Who could have predicted such problems? Oh that's right, everybody.


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tschmidt
Premium,MVM
join:2000-11-12
Milford, NH
kudos:9
Reviews:
·G4 Communications
·Fairpoint Commun..
·Hollis Hosting

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reply to Watcher_NNE

Re: Hope that FP makes it

said by Watcher_NNE :

IMHO, nobody can afford to pay the ridiculous cost of keeping these unions afloat.
FairPoint has not increased wages of union workers. I fail to see how union contract factors into current problem since that ought to have been factored into their financial analysis prior to the sale.

I always find it curious workers get demonized for negotiating favorable contracts and yet when management runs a company into the ground and still walks away with big bucks everyone just shrugs and says oh well that's the way Capitalism works.

/tom


SteveCon
IBEW 2222 Boston, MA
Premium
join:2004-09-02
Boston, MA

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reply to Marckus0513

Of course, unions are responsible for all that is bad in the US. Poor economy, low employment levels, little health insurance - you name it!

Let's all put all our trust in "Corporate America" - these guys only want to do what is best for their employees - you know; like promoting a strong economy by employing US residents at decent wages, providing paid health insurance and the like... they're not interested in an annual compensation packages that are worth more than any one person near the bottom of their company's pay scale could make in hundreds or even a thousand years.

If you're not p!ssed off - you're not paying attention.
--
UNIONS: The anti-theft device for working people.


Marckus0513
Just Because

join:2003-01-11
Vernon, VT

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reply to Watcher_NNE

said by Watcher_NNE :

FairPoint also got very stuck with the union as part of the deal. They are literally sucking the life out of the company. Ever see these guys work? IMHO, nobody can afford to pay the ridiculous cost of keeping these unions afloat.
How did I know that the unions would get brought in to this discussion. How do the unions have anything to do with the screwed up billing and the thousands of service requests that are stuck in Fairpoints computer systems? How do they have anything at all to do with the fact that due to these problems Fairpoint is struggling with customer retention?