Fairpoint Debt Holders Want Investigation - Argue that management has been, will be, incompetent

Fairpoint Debt Holders Want Investigation - Argue that management has been, will be, incompetent
Links: home · search · speed test · login · more ·

Fairpoint Debt Holders Want Investigation
Argue that management has been, will be, incompetent
03:51PM Tuesday Nov 03 2009 by Karl Bode
tags: business · Fairpoint Communications

According to the Burlington Free Press, the bondholders of more than $600 million in FairPoint debt are pushing for an investigation into the company's management. According to the filing Fairpoint, which filed for bankruptcy last week, engaged in action that "reveal(s) a pattern of misrepresentation and questionable decision-making, which merit investigation by an independent third-party." "This Court should not buy into their 'we’ve got it right this time' approach to these Chapter 11 Cases," argues the filing. Fairpoint continues to insist that the restructuring of $2.7 billion in debt obligations should have no impact on residential or business service.

Maine AG Drops Fake Fairpoint Test Investigation

Fairpoint Will Miss Broadband Expansion Commitments

Windstream Buying Up Fairpoint Debt?

Fairpoint Files Chapter 11

Fairpoint Owes About $619 Million

Three States Approve Frontier Verizon Deal

Oregon Regulators Not Thrilled With Frontier Deal

Fairpoint Hires New Marketing Firms

Links: New Topic
Forums »

TKJunkMail @ 3rd Nov 04:04PM:
Bankruptcy is always bad news for bond & stockholders

Contrary to what many here believe, bankruptcy is not just a way to screw over the customers and employees. It also results in massive losses for the bond & stockholders and often the firing of top mgt employees as well. So, it is hardly surprising that the bondholders want an investigation prior to a court ruling on the bankruptcy - banks would get 98% of the company, leaving the bondholders with virtually nothing(2%).

After the debt is restructured — wiping out $1.7 billion in debt — lenders will control the firm and FairPoint will remain $1 billion in debt. FairPoint has said it plans to transfer 98 percent of the company to the banks and 2 percent to bondholders

patcat88 @ 3rd Nov 04:41PM:
limited liability

Time to break »en.wikipedia.org/wiki/Piercing_t···ate_veil and hold all of the board of trustees criminally liable. If I start a company called Murder for Hire LLC, issue publicly traded stock, have a board of trustees, upper management, and have rank and file perform assassination for hire, it seems to be magically legal in the USA. Perhaps the Bloods and Crips should incorporate and become immuned to RICO.
reply

patcat88 @ 3rd Nov 04:56PM:
Re: Bankruptcy is always bad news for bond & stockholders

said by TKJunkMail :

often the firing of top mgt employees as well.

In what world? Maybe 1 or 2 execs leave as a token, not every C exec. The whole point of "reorganization" instead of liquidation is that the current management knows what they are doing, they just need "help" from the government.
reply

Mike @ 3rd Nov 05:28PM:
Re: limited liability

No. The articles of incorporation would be illegal and denied by the state to incorporate.

There is also something called a void contract. Void contracts are contracts dealing with illegal acts.

Meaning you can't put hits out on people and don't make a deal with the mafia or complain you got ripped by to a cop by a crack dealer.

If your murder death kill inc whatever was a video game company, then that would be not denied on industry.

--
"If something about the human body disgusts you, complain to the manufacturer" - Lenny Bruce
What this country needs is a good five dollar plasma weapon.
reply

joebarnhart @ 3rd Nov 05:43PM:
Re: limited liability

Wow, it's kinda scary that you'd know all that, Mike.

:o :D :o
reply

Bob61571 @ 3rd Nov 07:58PM:
Re: limited liability

If you take a Business Law course from a good professor....
reply

anon @ 3rd Nov 11:34PM:
Who wins when Fairpoint goes bankrupt?

except that executives get golden parachutes, whereas everyone else gets nothing. So of course it doesn't matter if they declare bankruptcy or not.
reply

pnh102 @ 4th Nov 07:06AM:
Shrug

Shouldn't these people have asked these questions before lending Fairpoint money? I smell another bailout.
--
Blagojevich / Madoff 2012!
reply

NOCTech75 @ 4th Nov 04:32PM:
Re: Shrug

I agree although right now my company needs to get paid, we are owed a small sum by their debt standard but for us it's a good chunk of change. I'll take anything that gets us that money at this point.
reply