FairPoint bankruptcy plan would give secured creditors 92 pct stake in restructured company

FairPoint plan would slash debt by two-thirds

PORTLAND, Maine — The debt load of telecommunications provider FairPoint Communications Inc. will be cut by nearly two-thirds under its bankruptcy reorganization plan.

The document filed Monday calls for FairPoint’s debt to be reduced to about $1 billion from nearly $2.8 billion.

It says secured creditors will receive a 92 percent ownership stake in the restructured company. Unsecured creditors will be paid 17 cents for each dollar they’re owed.

FairPoint CEO David Hauser said the plan will make FairPoint a strong company going forward.

North Carolina-based FairPoint paid $2.3 billion for Verizon Communications’ land line and Internet operations in Maine, New Hampshire and Vermont in 2008. It sought Chapter 11 bankruptcy protection in October.