The question was only in the timing: How long until FairPoint Communications files for bankruptcy?
Now we know.
FairPoint filed for Chapter 11 bankruptcy, citing its $2.7 billion (that's billion with a 'b') debt. It hopes to reduce that debt by $1 billion.
The three states most affected, Maine, New Hampshire, and Vermont, are likely to seek protection as well. New Hampshire has already said it will intervene in the reorganization of FairPoint to protect New Hampshire's interests.
On more than one occasion I and others have warned that the deal that sold Verizon's wireline assets in northern New England to FairPoint was a bad idea. Even the three state's utility regulators had doubts. But the deal went through and now we'll all be paying for it.
Can you hear me now?