Fairpoint Puts Bankruptcy on the Table
June 28, 2009 by Mark Ellis
Filed under Business
Fairpoint Communications has mentioned the dreaded “b” word in its latest filing to the Securities and Exchange Commission, which could make it the next company of many to file for bankruptcy in these harsh times. According to the filing, Fairpoint will go forward with bankruptcy if cannot negotiate an extension on its interest payments with its debt holders.
Based in North Carolina, Fairpoint recently took over Verizon’s landline phone network in Maine, Vermont, and New Hampshire. Despite its recent acquisition, Fairpoint has struggled with a variety of problems, not the least of them being the interest payments on its $530 million worth of loans.
This puts the ball in the lenders’ court, giving them the power to decide whether or not Fairpoint will have to undergo dramatic restructuring or not. A spokesperson for Fairpoint has confirmed that Fairpoint has other options if the debt holders to not agree to give Fairpoint more time to pay, but has also encouraged its lenders to reconsider.
Image: Flickr
