FairPoint Communications 2013 Annual Report Download - page 13

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is an attractive feature for our wholesale customers such as wireless carriers seeking cell tower backhaul services and national
carriers seeking middle and last mile solutions.
We have a multi-channel retention team, responsible for developing and executing customer retention programs across all
areas of FairPoint. Our save desk team has been enhanced to retain disconnecting customers. In addition, we have initiated proactive
programs to address customers coming off of promotions and term contracts. Through early intervention, we expect to reduce
churn and retain customers longer.
See "—Regulatory Environment" herein and "Item 1A. Risk Factors" included elsewhere in this Annual Report for more
information regarding the competition that we face.
Employees
As of December 31, 2013, we employed a total of 3,171 employees, 2,017 of whom were covered by 14 collective bargaining
agreements. Our agreements with the International Brotherhood of Electrical Workers ("IBEW") and the Communications Workers
of America ("CWA") in Northern New England cover approximately 1,800 employees in the aggregate and expire in August 2014.
See "Item 1A. Risk Factors—A significant portion of our workforce is represented by labor unions and therefore subject to collective
bargaining agreements, two of which, covering approximately 1,800 employees, expire in August 2014. If we are unable to
renegotiate these agreements prior to expiration, employees could engage in strikes or other collective behaviors, which could
materially adversely impact our business, financial condition, results of operations, liquidity and/or the market price of our
outstanding securities." In addition, one collective bargaining agreement in the Telecom Group is due to expire in July 2014.
Intellectual Property
We believe we own or have the right to use all of the intellectual property that is necessary for the operation of our business
as we currently conduct it.
Emergence from Chapter 11 Proceedings
On October 26, 2009 (the "Petition Date"), we filed voluntary petitions for relief under chapter 11 of title 11 ("Chapter 11")
of the United States Code (the "Bankruptcy Code") in the United States Bankruptcy Court for the Southern District of New York
(the "Bankruptcy Court"). These cases were jointly administered under the caption In re FairPoint Communications, Inc., Case
No. 09-16335 (each a "Chapter 11 Case", and collectively, the "Chapter 11 Cases"). On January 24, 2011 (the "Effective Date"),
we substantially consummated our reorganization through a series of transactions contemplated by our Third Amended Joint Plan
of Reorganization Under Chapter 11 of the Bankruptcy Code (as confirmed by the Bankruptcy Court, the "Plan").
The Plan provided for, among other things:
(i) the cancellation and extinguishment on the Effective Date of all our equity interests outstanding on or prior to the
Effective Date, including but not limited to all outstanding shares of our common stock, par value $0.01 per share,
options and contractual or other rights to acquire any equity interests,
(ii) the issuance of shares of our new common stock, par value $0.01 per share, and the issuance of warrants to purchase
shares of our common stock to holders of certain claims in connection with a warrant agreement that we entered into
with The Bank of New York Mellon, as the warrant agent, on the Effective Date, in accordance with the Plan,
(iii) the satisfaction of claims associated with
(a) the credit agreement dated as of March 31, 2008, by and among FairPoint Communications, Spinco, Bank of
America, N.A., as syndication agent, Morgan Stanley Senior Funding, Inc. and Deutsche Bank Securities Inc., as
co-documentation agents, and Lehman Commercial Paper Inc., as administrative agent, and the lenders party
thereto (as amended, supplemented, or otherwise modified from time to time, the "Pre-Petition Credit Facility),
(b) the 13-1/8% senior notes due April 1, 2018 (the "Old 13-1/8% Notes), which were issued pursuant to the indenture,
dated as of March 31, 2008, by and between Spinco and U.S. Bank National Association, as amended, and
(c) the 13-1/8% senior notes due April 2, 2018 (the "New 13-1/8% Notes" and, together with the Old 13-1/8% notes,
the "Pre-Petition Notes"), which were issued pursuant to the indenture, dated as of July 29, 2009, by and between,
FairPoint Communications and U.S. Bank National Association, and
(iv) the termination by its conversion into the Old Revolving Facility (as defined below) of the Debtor-in-Possession Credit
Agreement, dated as of October 27, 2009 (as amended, the "DIP Credit Agreement").
Our common stock began trading on The Nasdaq Stock Market LLC (the "NASDAQ") on January 25, 2011. In addition, on
the Effective Date, FairPoint Communications and FairPoint Logistics, Inc. (collectively, the "Old Credit Agreement Borrowers")