FairPoint asks court to put rebates on hold

AP News
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Posted: Dec 03, 2009 12:54 PM

FairPoint Communications has filed a court motion asking that it not be forced to give Maine customers rebates because of its poor service as the company works through bankruptcy.

The company is objecting to the Maine Public Utilities Commission's regulatory order Monday that it pay rebates in the form of $1.72 a line per month for 12 months _ a total of more than $8 million.

In an emergency motion filed Thursday in U.S. Bankruptcy Court in New York, FairPoint says the penalties should be stayed while it's going through Chapter 11 bankruptcy proceedings.

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The North Carolina-based FairPoint has been beset by problems since it bought Verizon's land line and Internet operations in Maine, New Hampshire and Vermont in 2008.