FairPoint hearing on customer rebates put on hold

AP News
Posted: Dec 09, 2009 11:15 AM

A bankruptcy court hearing has been put on hold on a motion by FairPoint Communications asking that it not be forced to give rebates to its Maine customers.

The hearing in U.S. Bankruptcy Court in New York was scheduled for Wednesday, but it was delayed.

The company is objecting to an order from the Maine Public Utilities Commission that it to pay rebates totaling $8 million over the next 12 months because of poor service to customers.

The North Carolina-based FairPoint filed for Chapter 11 bankruptcy in October. It is scheduled to file a bankruptcy reorganization plan on Thursday.

The company has faced numerous problems since it bought Verizon's land line and Internet operations in Maine, New Hampshire and Vermont in 2008.