FairPoint: We Need to Pay Our Debt Later

FairPoint Communications Inc. (FRP) has asked three states for permission to defer a quarterly $11 million debt payment.

The struggling ILEC owes the money on its purchase of Verizon Communications Inc.’s northern New England assets, a deal that went through last year.

FairPoint’s request comes days after the company reported a $76.1 million quarterly loss and suspended its dividend, and as it fights to keep subscribers from canceling their accounts.

FairPoint said delaying the debt payment until June 30 would help the provider manage its dwindling cash flow; the company said it lost $30 million in credit thanks to the Lehman Bros. bankruptcy and the bad economy.

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