FairPoint Communications 2010 Annual Report Download - page 65

Table of Contents
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, 2010 and the periods in which payments are due
and does not give effect to the Plan transactions which occurred on the Effective Date:
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
   
    


Long-term debt, including current maturities (a) $2,520,959 $ 58,725 $ 351,600 $1,560,638 $549,996
Interest payments on long-term debt obligations (b)(c) 518,034 135,355 254,150 128,529 —
Capital lease obligations 6,669 1,893 3,178 1,598 —
Operating leases 38,229 10,442 16,292 7,672 3,823
Total obligations $ 3,083,891 $ 206,415 $625,220 $ 1,698,437 $ 553,819
(a) Includes $550.0 million of the Pre-Petition Notes. Long-term debt maturities represent the normal contractual payment schedule. Following the filing of
the Chapter 11 Cases, we did not make any payments on our pre-petition debt. All obligations under the Pre-Petition Credit Facility and the Pre-Petition
Notes have been classified as liabilities subject to compromise in the consolidated financial statements as of December 31, 2010 and 2009. See note 9 to
the consolidated financial statements for more information.
(b) Excludes amortization of estimated capitalized debt issuance costs.
(c) Interest payments on long-term debt represent the normal contractual interest payment schedule, based on default rates as defined in the Pre-Petition
Credit Facility. Following the filing of the Chapter 11 Cases, we did not make any payments on our pre-petition debt.
On the Effective Date our Pre-Petition Credit Facility and our DIP Facility were terminated and we entered into the Exit Credit Agreement. Our long-term debt
obligations were reduced to $1.0 billion. In addition, as of the Effective Date we had letters of credit totaling $18.7 million outstanding under the Exit Credit
Facility. See “Part 1 — Item 1. Business — Emergence from Chapter 11 Proceedings — Exit Credit Agreement” for details.
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