FairPoint voluntarily files for Ch. 11 protection

[October 26, 2009]  CHARLOTTE, N.C. (AP) -- Telecommunications services provider FairPoint Communications says it has filed for Chapter 11 bankruptcy protection after agreeing on a deal with key lenders that will help lower its debt by $1.7 billion.

FairPoint said Monday the restructuring plan with lenders holding more than 50 percent of its outstanding secured debt is subject to bankruptcy court approval.

FairPoint expects to continue operating as normal while awaiting that approval.

FairPoint owns and operates phone companies in 18 states with a total of 1.65 million lines, but its largest holdings are in Maine, New Hampshire and Vermont, where it bought Verizon's land lines and Internet services for $2.3 billion in 2008.

[Associated Press]

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