FairPoint Communications 2009 Annual Report Download - page 80

Table of Contents
Hampshire on the following schedule: $15 million by the end of 2010, an additional $20 million by the end of 2011 and an additional $30 million by the
end of 2012. This investment commitment is inclusive of the $50 million previously required by the NHPUC.
Additionally, the orders issued by the PUCs in Maine, New Hampshire and Vermont in connection with their approval of the Merger include a
requirement that we pay the greater of $45 million or 90% of our free cash flow (defined as the cash flow remaining after all operating expenses, interest
payments, tax payments, capital expenditures, dividends and other routine cash expenditures have occurred) annually to reduce the principal amount of
our indebtedness, until certain financial ratio tests have been satisfied.
At this time, it is unclear what effect the filing of the Chapter 11 Cases will have on the requirements, including service quality penalties, imposed
by the PUCs in Maine, New Hampshire and Vermont as a condition to the approval of the Merger and whether such requirements will be enforceable
against us in the future.
We expect that the orders by the PUCs in Maine, New Hampshire and Vermont will be amended based on regulatory settlements that we
negotiated in connection with the Chapter 11 Cases and the Plan. See "Item. 1—Business—Chapter 11 Cases."
On January 30, 2009, we entered into the Transition Agreement with Verizon in connection with the Cutover of certain back-office systems, as
contemplated by the Transition Services Agreement. The Transition Services Agreement and related agreements had required us to make payments
totaling approximately $45.4 million to Verizon in the first quarter of 2009, including a one-time fee of $34.0 million due at Cutover, with the balance
related to the purchase of certain internet access hardware. The settlement set forth in the Transition Agreement resulted in a $22.7 million improvement
in our cash flow for the year ended December 31, 2009.
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We do not have any off-balance sheet arrangements.
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The tables set forth below contain information with regard to disclosures about contractual obligations and commercial commitments.
The following table discloses aggregate information about our contractual obligations as of December 31, 2009 and the periods in which payments
are due:
(a) Includes $550.0 million of the Notes. Long-term debt maturities represent the normal contractual payment schedule. All payments have been
stayed by the filing of the Chapter 11 Cases. All
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   
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
Long-term debt, including current maturities(a) 2,515,446 45,000 122,025 391,050 1,957,371
Interest payments on long-term debt obligations(b)(c) 639,573 135,201 259,568 220,175 24,629
Capital lease obligations 9,982 3,033 3,749 3,095 105
Operating leases 45,584 11,007 16,728 10,198 7,651
Total obligations 3,210,585 194,241 402,070 624,518 1,989,756