FairPoint Seeks Concessions From 3,000 Union Workers

[Omaha Steve]

http://www.mpbn.net/Home/tabid/36/ctl/ViewItem/mid/3483/ItemId/9481/Default.aspx

10/22/2009 12:19 PM ET

The company is facing the possibility of bankruptcy, prompting the governors of Maine, New Hampshire and Vermont to seek assurances that FairPoint's service will not erode further if bankruptcy becomes a reality.

Faced with the spectre of bankruptcy, FairPoint Communications is seeking wage and other consessions from its 3,000 union employees in northern New England. A meeting on the issue is scheduled for today in Boston.

Meanwhile, the governors of Maine, New Hampshire and Vermont have written to FairPoint CEO David Hauser, urging him to protect the company's quality of service if it does file for bankruptcy. Thousands of FairPoint's customers in the region have complained about service and billing problems, and the three governors said in the letter that they want assurances from the company that financial restructuring "will not result in further erosion of the service you provide."

FairPoint purchased Verizon's northern New England landline network last year for $2.4 billion. The company defaulted on its bank loan but is in talks with lenders in hopes of restructuing its debt. But the company might still be forced to file for bankruptcy protection.

[LiberalFighter]

1. Did Fairpoint pay too much for it?