FairPoint Communications debt would be cut nearly two-thirds under its newly filed bankruptcynreorganization plan. The plan was submitted in U.S. Bankruptcy Court in New York, wherenFairPoint filed for Chapter 11 in October. It calls for debt to be reduced to about $1 billion fromnnearly $2.8 billion. "When FairPoint emerges, it will do so with a capital structure that containsnsignificantly less debt," CEO David Hauser said on a conference call. "As a result, FairPoint'snfinancial position and ongoing liquidity will be significantly strengthened." Secured creditorsnwould receive shares of newly issued stock amounting to an initial 92 percent ownership stakenin the company. Unsecured creditors would get the rest. The plan is open to comment fromncreditors and requires approval by regulatory bodies including the bankruptcy court.
展开▼
