FairPoint Seeks Concessions From Union Workers

CLARKE CANFIELD

PORTLAND, Maine (AP) — Saddled by crippling debt, FairPoint Communications Inc. is asking its union employees in northern New England for pay cuts and other concessions as it seeks to avoid bankruptcy.

Company and union officials representing about 3,000 workers have met regularly in recent months to exchange information and discuss ways FairPoint can reduce costs, said FairPoint spokeswoman Rose Cummings. No announcements were made after a closed-door meeting Thursday in Boston.

The discussions come at a time when FairPoint is negotiating with lenders about restructuring its huge debt load. The Charlotte, N.C.-based company says it soon may be forced to file for Chapter 11 bankruptcy protection.

"We cannot sustain the current level of debt with the current business model," Cummings said. "So we have to reduce our debt and we have to improve efficiency and cut costs."

FairPoint owns and operates phone companies in 18 states with a total of 1.65 million lines, but its largest holdings by far are in Maine, New Hampshire and Vermont, where it bought Verizon's land lines and Internet services for $2.3 billion in 2008.