FairPoint files for Chapter 11 bankruptcy protection - FierceTelecom

While not much of a surprise to anyone watching the telecom industry, FairPoint Communications made it official today that it has filed for Chapter 11 reorganization under in the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York.

Under the restructuring plan it has reached with "supporting lenders" that hold more than 50 percent of the ILEC's outstanding debt, FairPoint said it will reduce its debt by $1.7 billion. Still, FairPoint is far from being out of the woods. For one, the Restructuring Plan, which FairPoint says it will file right away, requires Court approval. In the meantime, it will be business as usual for FairPoint and its subsidiaries throughout the Chapter 11 process as it waits for the Court to confirm its Restructuring Plan...