(Host) FairPoint Communications is weighing its options after the Vermont Public Service Board rejected the company’s plan to work itself out of bankruptcy.
FairPoint needed the approval of regulators in Maine, New Hampshire and Vermont.
The company’s Vermont President, Mike Smith, says the reorganization has been in the works since last fall and would have forgiven $1.7 billion in debt. Smith says the company is working to decide its next move:
(Smith) "The best thing for Vermonters is for FairPoint to emerge from Chapter 11 as quickly as possible. So right now, we’re looking at all options. Those options could be going back for reconsideration to the Public Service Board, or could be seeking relief through the New York bankruptcy courts."
(Host) In its ruling, the Public Service Board said the reorganization plan would delay the deployment of broadband and allow the company to avoid penalties for poor service.
Deputy Commissioner Steve Wark says the Douglas administration would like the case to be resolved by the Public Service Board – not by Bankruptcy Court.
(Wark) "The board has left the door open for FairPoint to refile and amend the record. And we hope FairPoint will avail themselves of that opportunity."
(Host) FairPoint had hoped to emerge from bankruptcy by the fall. But the company doesn’t know yet if the Public Service ruling will be a setback.