FairPoint has Reached an Agreement with its Bank Lenders that will Restructure its Costs and Balance Sheet

As a leading provider of a full range of communications services, FairPoint Communications provides local and long distance voice, data service, Internet, television and broadband services. FairPoint operates 32 local exchange companies in 18 states with 1.7 million access lines. Like many companies, FairPoint has been impacted by the recent turmoil in the financial markets. As we have shared with many of our stakeholders, we have been working with our bank lenders to reduce our debt. We are pleased to announce FairPoint has succeeded in reaching a pre-arranged deal with our bank lenders that will reduce our debt in excess of $1.7 billion. We have entered Chapter 11 to implement this deal and restructure our costs and balance sheet. This is good news and we are confident that FairPoint will emerge as a much healthier and more viable company structured for future growth and profitability.  

FairPoint is Positioning to Better Serve the Needs of Our Customers

FairPoint Communications is positioning to compete more effectively in a dynamic marketplace and better serve the needs of our customers throughout the United States. We are doing this by cutting costs, generating new revenues and restructuring our debt. Our cost cutting and revenue generating initiatives are underway, and we continue to make progress on a number of operational fronts, including:

• Investment in and construction of the next generation network in northern New England known as VantagePoint;

• Expanding broadband service into new communities; and

• Continuing to offer new products and services.

FairPoint customers will receive the same products, uninterrupted services and exceptional customer service. Rest assured:

• Service will NOT be interrupted;

• Customers will continue to receive the high level of service they have come to expect and customer satisfaction will remain a priority; and

• We will continue expanding our product availability and market reach.

How will this Action Ultimately Create a Positive Outcome for FairPoint’s Customers?

• During this process we will continue our focus on steadily improving customer service. 

• The filing will facilitate an appropriate capital structure for the company that will significantly strengthen its financial condition and liquidity. As a result, we will be better positioned to improve the customer experience by making investments in our network, products and services.

• With this balance sheet restructuring and cost reduction, we will be able to focus all of our efforts on our customers, employees and strategic growth plans. This will enable us to maintain our position as a leading provider of communications services.

For more information, please review our Frequently Asked Questions or call 1.888.290.4881.

If you would like a list of the filing entities please click here.