FairPoint Communications 2009 Annual Report Download - page 10

Table of Contents
terms of the proposed financial restructuring contained in the Plan Term Sheet, as evidenced in the Plan.
In addition, the Plan is the result of extensive negotiations among the Company, the Steering Committee, certain unions and certain representatives
of regulatory authorities in Maine, New Hampshire and Vermont. The Plan incorporates and implements various settlements reached with these parties,
but is subject to the approval of the applicable state commissions or boards with respect to certain actions resulting from the Plan.
On February 8, 2010, the Company filed an initial version of the Plan, together with an accompanying Disclosure Statement, with the Bankruptcy
Court. On February 11, 2010, the Company filed an amended version of the Plan together with an accompanying amended Disclosure Statement. On
March 10, 2010, the Company filed the Plan and the accompanying amended Disclosure Statement. On March 11, 2010, the Bankruptcy Court
approved the adequacy of the Disclosure Statement, the solicitation and notice procedures with respect to confirmation of the Plan and the form of
various ballots and notices in connection therewith. On April 23, 2010, the Company filed a supplement to the Plan (as modified, supplemented or
amended, the "Plan Supplement"). The voting deadline with respect to the Plan occurred on April 28, 2010. The vote tabulation has concluded and the
Company has obtained the approval of the classes of creditors entitled to vote to accept or reject the Plan. On May 7, 2010, the Company filed a
supplement to the Plan Supplement and on May 11, 2010, the Company filed a modified version of the Plan.
The Plan will become effective only if it is confirmed by the Bankruptcy Court and upon the fulfillment of certain other conditions contained in the
Plan. These conditions precedent include, but are not limited to, the following:
•the Bankruptcy Court shall have entered the confirmation order and such confirmation order shall have become a final order;
•the treatment of certain intercompany claims and the assumption of certain operating post-reorganization contracts shall be reasonably
acceptable to the Steering Committee;
•the conditions precedent to the Exit Facility (as defined herein) shall have been satisfied and/or waived;
•the Company shall have obtained certain regulatory approvals, including approvals from the FCC and the PUCs in Maine, New
Hampshire, Vermont and Illinois; and
•certain agreements with labor unions agreed to with respect to the Plan shall have been ratified by the applicable union membership,
which ratification has already occurred.
The conditions precedent to the Plan may be waived by the Company, except with respect to certain conditions, which waiver requires the consent of the
Steering Committee. The Company cannot make any assurances as to when, or ultimately if, the Plan will become effective.
The confirmation hearing to determine whether to confirm the Plan in the Bankruptcy Court commenced on May 11, 2010. The Bankruptcy Court
continued the hearing to July 2010, pending approvals of the PUCs in Maine, New Hampshire and Vermont and the resolution of any dispute with
respect to the litigation trust contemplated by the Plan.
The summary of the provisions of the Plan and our related capital structure contained herein highlights certain substantive provisions of the Plan
and our resulting capital structure and is not a complete description of the Plan or its provisions or our proposed post-petition capital structure. The
summary is qualified in its entirety by reference to the full text of the Plan, which is available at www.fprestructuring.com under the "Court Filings"
link.  .
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