Special Sunday Meeting May Block Verizon-Fairpoint SaleNH expresses new concerns about the financial logistics of the deal 02:10PM Saturday Mar 29 2008 by KathrynVtags: business · telco · trouble · Verizon Online DSL · Fairpoint CommunicationsTipped by mattmill  It took months of negotiations for the regulators in Maine, New Hampshire and Vermont to agree to the sale of Verizon’s New England DSL and phone networks to Fairpoint Communications. The deal was finally approved, with many changes, by all three states and is set to close this coming Monday night. However, there remain strong concerns about allowing Fairpoint, a company with significant funding problems, to take over the network. Those concerns are so strong, in fact, that the utility regulators in New Hampshire have called for a special Sunday meeting to re-discuss the issue. The group is convening because it has discovered that the interest rate on Fairpoint’s loans is much higher than expected and they are concerned that this is going to place the business in financial jeopardy. They wonder if waiting until interest rates are lower might be a better option. The state of Maine also held a meeting to discuss this issue but decided to go ahead and allow the sale in what may be a lose-lose situation for everyone involved.
Related:- Vermont Regulators Deny FairPoint Deal
- New Hampshire Approves Fairpoint Deal
- Verizon/Fairpoint Deal a Lose-Lose Scenario For Consumers
- Verizon Sells ME, NH, VT Networks
- Fairpoint Makes Poor First Impression In New England
- FairPoint Delays Full Takeover of Verizon Networks
- FairPoint Is Failing to Please New Customers
- Verizon Union Workers Set Sunday Strike Deadline
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Skeedatl
Ah, push it - push it real good
Premium
join:2007-12-26
The Cloud | Can't believe anyone Unions want Verizon's deep pockets, the State takes bribes from everyone and Verizon wasn't to unload it and write off the "losses".
Everyone has their angle. | |
| | pcme2000
join:2008-01-17
Bangor, ME
 ·Verizon Online DSL
| Verizon-Fairpoint Sale I live in Eastern Maine and hope that the sale of Verizon does NOT go through as planned on Monday night. I know many more people that hope the same thing. Why let a tiny little company that is in bad finacial position take over were people are happy. | |
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n2jtx
join:2001-01-13
Glen Head, NY
 ·Optimum Online
| Re: Verizon-Fairpoint Sale said by pcme2000 :Why let a tiny little company that is in bad finacial position take over were people are happy. Answer: So they can eventually be bailed out by the taxpayers and their executives walk away with lucrative golden parachutes.
That was an easy one. Alex, I'll take "Paid off public utility commissioners" for $1000 please.
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I support the right to keep and arm bears. | |
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BOGBS
Set It, And Forget It
Premium
join:2004-05-11
Saco, ME
·RoadRunner Cable
 ·Vonage
·Great Works Internet
edit:
March 29th, @06:37PM
| said by pcme2000 :I live in Eastern Maine and hope that the sale of Verizon does NOT go through as planned on Monday night. I know many more people that hope the same thing. Why let a tiny little company that is in bad finacial position take over were people are happy. I wouldn't exactly call everyone happy, but they'll have many more problems if FairPoint can't hold up it's end of the deal. It's finances don't appear to support them being able to do so. If this does get finalized, the only thing we can do is hope for the best...
As well all know, the PUCs obviously never had the customer's best interest in mind. They're part of the whole reason Verizon wants to axe Northern New England, anyhow. I'm sure that if Verizon Maine wanted to propose building out some FTTH, that the PUC would stipulate that they allow wholesale access, which is complete BS. That's of course only a theory, but I wouldn't be surprised, looking at how much the MPUC has almost always tried to force Verizon's hand. Verizon isn't innocent in problems either, but the PUC never helped them to want to stay in Maine. Now we'll most likely be stuck with a company who probably doesn't have the assets to keep the utility going, never mind the "high speed DSL" upgrades. | |
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V Tech
@verizon.net | verizon/fairpoint excuse the verbage but f**k Verizon they have not cared for the customers for a long time. let i happen i plan as well as many others to cancel all of their provided services New England wide SCREW THEM | |
| | bicker
join:2007-05-10
Burlington, MA
| Re: verizon/fairpoint However, that's just the issue: The rest of New England provides Verizon enough of a financial advantage to offer service. The folks in Northern New England simply aren't willing to pay a high enough premium to make doing business there worthwhile. Folks there can rail against that reality all they wish, but if it were not true, then Verizon wouldn't be letting their assets there go. The problem here is simply a lack of profit, nothing else. The choice is clear: Provide a business environment where suppliers can earn more profit, or accept that you're fostering a business environment where customers will get incredibly poor (or no) service. | |
| EPS
join:2008-02-13
Hingham, MA | VZ shareholders get screwed too So now they get shares in FairPoint, a company that will be drowning in debt from the start? I wouldn't be surprised to see their shares drop suddenly soon after the merger closes as VZ owners move to sell... | |
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OSUGoose
join:2007-12-27
Columbus, OH
clubs: | Re: VZ shareholders get screwed too um fairpoint isent merging with vz, verizon is offloading those states to concentrate on more profitable areas, similar to sprint spinning off its POTS division to embarq, or sbc offloading its americast to WOW when they bought up Ameritech. | |
| | | EPS
join:2008-02-13
Hingham, MA | Re: VZ shareholders get screwed too The deal is structured as thus: VZ spins off Northern New England as a separate operating company to its shareholders. The new operating company immediately merges with Fairpoint, so the shares of Northern New England become Fairpoint shares. | |
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rcdailey
Dragoonfly
Premium
join:2005-03-29
Rialto, CA
| Re: VZ shareholders get screwed too If the financing of this deal via the sale of bonds is going to cost more now due to having to offer a higher return on the bonds, then that can make the deal unworkable. Verizon may be stuck with the territory unless they are able to help Fairpoint by making it less costly. Blame the politicians for that, if you wish. | |
| | | hottboiinnc
Kyle
join:2003-10-15
Toledo, OH | Americast could have a good thing for SBC/AT&T. Already they were a cable company. they had the video there. no problem. Just update the lines run FTTC or FTTH then and would be already a head of TWC and Insight there. | |
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whatnh
@comcast.net | no they wont because when FAIRPOINT fails and they will fail verizon will c ome back in and get what they want at the tax payers expense | |
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