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Bankruptcy for FairPoint?
By DENIS PAISTE
New Hampshire Union Leader Staff
Tuesday, Oct. 6, 2009
A bankruptcy filing by FairPoint Communications Inc. seems inevitable based on its negative cash flow, a visiting professor at Dartmouth's Tuck School of Business said yesterday.
►Bedford resident has long Fairpoint goodbye (2)
►Fairpoint's CEO: Embattled, but bold (20)
►Fairpoint's boss praises workers' dedication (17)
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YOUR COMMENTS
Well if it is a UNION problem then why are there golden parachutes for excecutives???? I have never known of a UNION Member getting a bonus for not making there numbers!!! BTW Verizon never had a problem paying there employees and Fairpoint should have thought about this BEFORE they were quick to sign a % year contract with the union!!! Oh ya they wanted this deal to go through!!! Where is GENE JOHNSON??? Don't forget he got a 33% pay increase for the takeover and 1.5 million dollar bonus when he retired FOR??? Making a company FAIL!!! Face it Union or not this company was going down!!
- Steve, Jefferson
The union employees and the non union employees of FairPoint had nothing to do with the problem. The Company founder had gradoise ideas and borrowed his way to bankruptcey. This all could fall on Gene Johnson and the small company he ran. They couldn't run the standish phone company, so why do you people think that they could run Northern New England Telephone Company!
- Terry Wood, Limerick, Maine
I actually accepted a job from Fairpoint about a year ago until my spouse had second thoughts about relocating from Virginia Beach to Portland. I will have to say that the people I was to work with, and still keep in touch with, were the most hard working & dedicated as I have ever met. I was so looking forward to moving to Portland and helping them through the transition from Verizon to their own systems. From what I can tell Fairpoint bit off more than it could chew financially and the market crash last year just exponentially expanded their financial turmoil. The core problem though, I believe, is their new computer systems provided by Cap Gemini which they seem to be getting no support for a resolution. At this point there really is no other way than to declare chapter 11 and reorganize the debt in order to get control of the death spiral. Another good option is the rumor going around that Windstream (formerly Alltel) is buying up as much of the corporate bonds in order to atake over the company. As hard as that may sound to the good people of Maine, that is probably the best thing that could happen for everyone, including Fairpoint and it's employees.
- greg wilson, virginia beach, virginia
Got broadband? get VOIP (voice over IP). Call the GLOBE with UNLIMITED minutes for under 30 bucks a month. Dump the copper line. I use vonage with zero problems and more feature.
- Paul, Machester
VZ wanted to dump and run. Now they want to sell off all of the landlines everywhere as no profit is being found. Over the water most use cell phones and do not own landlines as they cost too much to have. Now Fairpoint should of spent more time to make the customer billing much easier as accounts receiving is really a number one priority. Thank the politicians and NHPUC for PSNH as well, since that is a big hairball as well. In a few years landlines will be something of the past here as well. Fairpoint get well over $140 month for two landlines for me which is insane.
- Joel, New Boston
This was all predictable and predicted. I never understood why the regulators in NH, VT, ME were so eager to approve the FairPoint takeover when anyone could see it wouldn't work, fire and police raised concerns about maintenance of communications services, etc.
The fix must have been in. And Verizon is laffing all the way to the bank with the $620 million tax credit they got out of it thanks to a special bill crafted by bribed legislators ... er, I mean campaign contributions, of course, not bribes!
- Sally M., Concord
Most of the same employees, same processes, different systems. Unfortunately, the new systems chosen appear not to be up to snuff.
- Susan, Manchester
I have to say.. I am a Fairpoint employee and Union member. I come into work and do the BEST I can with the systems that the company has chosen. They do NOT work properly and the company who deleloped them CAP GEMINI is NOT working with us to CORRECT THIS MESS. We have numberous reports to them about helping. This company tries to treat all of our customers like GOLD. WHen working with inadequate systems how is that possible? Simple changes are in error without the help from CAP GEMINI. FP is still a public utility. We need all the support we can to provide for our customers! The customers are the most important and next would be employees. What will happen if the bancruptcy comes in and they "restructure" and reduce employees by 1/2. Do you think it is tough getting service now? If we work with only 1/2 of who we have now it will only make it that much harder to get anything to work properly. I work directly with ALL THE TROUBLE SYSTEMS!! They really stink! I come into work every day and work my butt off for our customers!
- Kristy, Manchester NH
Yo.. Jim Ellis, Hudson I don't know who you think your kidding, yourself? Underworked, overpaid, and now your company is bankrupt. There are thousands of unemployed people all over NH who would give their left arm to stand around and laugh up a storm with some local cop. Typical union employee response; it is never "your" fault that that Fairpoint is broke, oh noooo. Meanwhile the customer is getting bad service. Enjoy the party, from what we UL readers see in the paper and elsewhere, soon there will be a new name on the side of the truck parked next to the manhole.
- Thomas, Manchester, NH
Can someone PLEASE tell me how this company could have been cleared to purchase lines from verizon less than 2 years ago? With 80 million in reserves and 2.5 billion in debt, one has to believe that the picture for Fairpoint was not that much brighter (financially) for them in 3/08 when the purchase went down.
How was it missed that Fairpoint was/is in such despair? Something seems fishy to me here. Anyone else agree that someone should have audited their books to realize that this was not the best 'deal' for the consumer and only made VZ a richer. Anyone else disappointed with our capitalism these days?
- Kevin, Greenland
Instead of unloading on the employees who had little or no say in this acquisition, let's start pointing fingers at the source of the problem: meddling politicians and the PUC.
- Leo, Bedford
The days of the profitable wire line company as we now know it are gone. The information super highway is something that should be available to everyone and at a reasonable cost, just as our automobile super highways are. There is not enough profit to allow any company, be it telephone or CATV to service every reasonable location without some sort of subsidy. As for competition, if one company can not afford to run circuits to every location, you can not expect to be able to run multiple and mostly unused circuits buy different companies.
It is time to bring the information age to all of New Hampshire's people, not just the ones in the very southern part of the state.
- SR, Grantham
Enough with dumping on the employees, ok? The guys standing over the man-hole are there for the safety of the men in the hole. If there is a build-up of poisonous gasses leaking into the hole, the man above is there to initiate emergency procedures. I wouldn't go into a man-hole with-out a man above. There are state and federal laws and rules requiring the second man. As far as laughing or joking goes, I've never worked at any job where that doesn't occur. How that drives a company into bankruptcy, I'll never know. As for the "coffee drinking" detail officers, the company pays for them, also for our protection, from the coffee drinking, text messaging, radio blasting, cell phone using innattentive drivers on our roads. Even with the officers on duty, trucks are still hit, workers have been injured or killed, and detail officers run down by careless drivers distracted by everything but driving their cars. So, if a guy is drinking a coffee, does that affect the lousy driving of the public? Again, there are laws governing the use of detail officers and flagmen. The employees are paid a wage that makes it affordable to live in this part of the country. To suggest that lower wages would in some way make the situation better, doesn't make sense. Training and experience are intense, and lower wages would only create a turnover rate that would ultimately destroy the company. We were out in the ice storms last winter, while Tommy in Manchester was at home nice and cozy. We are out in the floods, rain and snow, and blazing heat of summer, working under conditions that most people can't imagine even exist. Manholes that require Clean Harbors to rid them of toxic sludge that resembles crude oil, water constantly running into a hole while you try to complete a job. It takes a special kind of employee to put up with those conditions day-in and day-out, and I'm proud to say, I am one of them. How any of this is driving Fairpoint into bankruptcy escapes me completely. It's simple....Bad business decisions, a PUC that had no clue of what was happening, and a crashing economy is to blame. Right now, the employees are all that's keeping this company afloat. So, Tom, maybe you are just misinformed, or just over simplified the problem by blaming the union. Fairpoints promises were well intentioned, I'm sure. Timing was not on their side, and I believe that, if they can hang on, will follow through with those promises..
- Jim Ellis, Hudson
Hey Joe from Merrimack, I completely disagree with your hypocrisy. If the company isn't worth doing business with then why should people take their hard earn cash and spend it at a company that clearly isn't financially strong? A lot of people lost their jobs because of Madoff's ponzi scheme...maybe the press should have ignored his company as well?!?!?
- Mike, Epping
This was a train wreck before the ink was dry. Who leveraged FairPoint into bailing Verizon out of a market they didn't want? If it was "so good" why didn't one of the other name players pick it up?
- R, Raymond
Congrats to the IBEW, the UL, WMUR and all the chronic whiners for driving FairPoint into bankruptcy by creating "news" like this. Customers are afriad to do business because of you. So people will lose jobs. But you're happy.
- Joe, Merrimack
What about the Verizon shareholders who got over $1 billion in Fairpoint shares handed over to them as part of the Verizon-Fairpoint deal..wow
- dutch, the netherlands
enough with blaming the employees! they are only working with the tools provided. the employees, the unions and most customers were against this. politicians and the puc didn't listen. hell, i might file bankruptcy and relieve myself of my debt. i'll take the credit hit and save a fortune!!
- fpc, bedford
INFORMATION SUPERHIGHWAY OR DIRT ROAD !!! If I remember correctly thats what all the employees shirts said and at the rallys held to STOP THE SALE, all where warned that FAIRPOINT couldnt do it and would not make it. Did anybody listen, NO you didn't. Now all I can say is WE TOLD YOU SO and THANK YOU PUC for allowing this mess to happen. And its not the employees fault that bills and orders are messed up it is the half *** computer system we where cut over to that CAP GEMINI said was good to go. So people blame the PUC and CAP GEMINI for all your wonderful problems.
- Joey G, Manchseter
I was reading another article a few days ago where they talked about other deals Verizon has done as it has sold off its landline businesses. The situation we find ourselves in now with FairPoint appears to be just another in a long string of defunct businesses. I did switch from FairPoint but am not in any hurry to see Verizon come back - what is to stop them from doing this again?
- Jeremy, Suncook
GM like bankrupcy? Oh, does that mean that B O'Bama is purchasing Fairpoint? Allowing a union to run a broken company? How about FP going bankrupt, the creditors get one half what they are owed, and a new company:: Frontier? Century Tel? Buy FP. Whatever company takes over, I hope it doesn't continue to operate with laughing manhole watchers, coffee drinking traffic cops, et all. The land line phone company needs a kick .. in the. There is a culture within the union of these FP employees; do as little as possible, and get paid more and more .. not only is FP broke, the way it operates in a changing economy is also broken. One example: no uniforms. The gas company guy wears a uniform, UPS wears a uniform, Fed Ex wears a uniform .. it is a way of showing the company brand. FP's brand? Dirty jeans, long hair, .. I've seen some of these employees drive by and I would not welcome one of them into my home, would you? The new owner will need to shake up the work force, and get the local tel into the 21th century.. they also will need a few billion dollars ..
- tommy, manchester,nh
The company was in dire straights before they took over Verizon's lines and the states were warned about it. Why are the politicians surprised that they're failing now...Only in Government can an organization run massive deficits and continue to operate...
- Ken, Rochester
That took less time than I thought!
Welcome back Verizon!
- Dennis, Hooksett
Fairpoint has obligations they made to NH customers in Rural areas. Does this mean they will continue to renege on there obligations they made to Rural NH. If so why doesn't the PUC demand a forced liquidation. The viability of the Fairpoint stockholder who normally takes a dividend payment is of no concern to NH customers, but customer service is.
- Chris, Merrimack
What about the common shareholders though?
- Chris, Manchester
So...what does the NHPUC have to say? As NH citizens, shouldn't we hold them accountable for at least some part of this impending mess? With winter around the corner, it sure does have me appreciating the work and disaster plans of PSNH.
- Jack, Manchester
Why do we all keep forgetting about how all the local politicians throughout the state of NH chased Verizon out.
Politicians need the general population to forget or they would be thrown out.
Thistime they got away with it.
- Bob, Salem
Im not surprised that they are doing bad, I wonder what kind of employees they have who cannot process a direct payment from my account. For the second time in a row they have failed although my informations were correct and direct payments were processed correctly in previous years this year something did not seem right!!
- simi, manchester
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