FairPoint Communications 2009 Annual Report Download - page 18

Table of Contents
•the Pre-petition Credit Facility; and
•the Swaps.
Under the terms of the New Indenture, as a result of the filing of the Chapter 11 Cases, all of the outstanding New Notes became due and payable
without further action or notice. Under the terms of the Pre-petition Credit Facility, upon the filing of the Chapter 11 Cases, all commitments under the
Pre-petition Credit Facility were terminated and all loans (with accrued interest thereon) and all other amounts outstanding under the Pre-petition Credit
Facility (including, without limitation, all amounts under any letters of credit) became immediately due and payable. In addition, as a result of the filing
of the Chapter 11 Cases, an early termination event occurred under the Swaps. The Company believes that any efforts to enforce payment obligations
under such debt instruments are stayed as a result of the filing of the Chapter 11 Cases.
Prior to the filing of the Chapter 11 Cases, the Company failed to make principal and interest payments due under the Pre-petition Credit Facility
on September 30, 2009. The failure to make the principal payment on the due date and failure to make the interest payment within five days of the due
date constituted events of default under the Pre-petition Credit Facility. An event of default under the Pre-petition Credit Facility permits the lenders
under the Pre-petition Credit Facility to accelerate the maturity of the loans outstanding thereunder, seek foreclosure upon any collateral securing such
loans and terminate any remaining commitments to lend to the Company. The occurrence of an event of default under the Pre-petition Credit Facility
constituted an event of default under the Swaps. In addition, the Company failed to make payments due under the Swaps on September 30, 2009, which
failure resulted in an event of default under the Swaps upon the expiration of a three business day grace period.
Prior to the filing of the Chapter 11 Cases, the Company also failed to make the October 1, 2009 interest payment on the Notes. The failure to
make the interest payment on the Notes constituted an event of default under the Notes upon the expiration of a thirty day grace period. An event of
default under the Notes permits the holders of the Notes to accelerate the maturity of the Notes. In addition, the filing of the Chapter 11 Cases
constituted an event of default under the New Notes.
In addition, as a result of the restatement of the Company's condensed consolidated financial statements for the period ended June 30, 2009, as set
forth in a Quarterly Report on Form 10-Q/A dated April 30, 2010, the Company determined that the Company was not in compliance with the interest
coverage ratio maintenance covenant and the leverage ratio maintenance covenant under the Pre-petition Credit Facility for the measurement period
ended June 30, 2009, which constituted an event of default under each of the Pre-petition Credit Facility and the Swaps, and may have constituted an
event of default under the Notes, in each case at June 30, 2009.
NYSE Delisting
As a result of the filing of the Chapter 11 Cases, on October 26, 2009, the New York Stock Exchange (the "NYSE") notified us that it had
determined that the listing of our common stock should be suspended immediately.
The last day that our common stock traded on the NYSE was October 23, 2009. On November 16, 2009, the NYSE completed its application to
the SEC to delist our common stock.
Our common stock is currently trading under the symbol "FRCMQ" on the Pink Sheets.
Risks and Uncertainties
The ability of the Company, both during and after the Bankruptcy Court proceedings, to continue as a going concern, is dependent upon, among
other things, the ability of the Company to confirm the Plan. Uncertainty as to the outcome of these factors raises substantial doubt about the Company's
ability to continue as a going concern. The consolidated financial statements contained in this Annual
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