FairPoint Communications not quite ready to file reorganization plan

By Lisa Kerner

Charlotte, N.C., Feb. 1 - FairPoint Communications, Inc. will file its bankruptcy reorganization plan "very soon," according to an attorney familiar with the case.

On Monday, the attorney said the company was "just papering some agreements with key constituents."

As previously reported, in October FairPoint and its subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York.

At that time, FairPoint said it would file a plan of reorganization shortly.

Prospect News reported that FairPoint had reached an agreement on a financial restructuring plan with lenders holding more than half of the outstanding debt under FairPoint's secured credit facility.

The company said it expects the restructuring plan to reduce its debt to about $1 billion from its current level of nearly $2.7 billion.

FairPoint Communications provides communications services and is based in Charlotte, N.C. Its Chapter 11 case number is 09-16335.

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