Fairpoint Communications, Inc.(fka FRCMQ)

[fredman]

FairPoint to convert pre-bankruptcy debt to equity

NEW YORK, Feb 8 (Reuters) - Telecommunications provider FairPoint Communications Inc on Monday filed a delayed plan of reorganization that calls for distributing millions of new shares to claim holders.

The company said in court filings that $2.1 billion in allowed pre-petition credit agreement claims could expect a recovery of about 87.9 cents on the dollar in cash and new shares, and $635.3 million of unsecured claims could expect to recover 17 cents on the dollar in the form of shares of the reorganized company.

Subject to certain conditions, some 47 million new common shares will be distributed to holders of Class 4 pre-petition credit agreement claims, and 4 million shares will be distributed to Class 7 unsecured claim holders.

Current shareholders would be wiped out.

Source: http://www.finanznachrichten.de/nachrichten-2010-02/16090533-update-1-fairpoint-to-convert-pre-bankruptcy-debt-to-equity-020.htm