Web Editor: Maureen O'Brien, Managing Editor Created: 12/21/2007 2:30:23 PM Updated: 12/21/2007 7:11:48 PM
MONTPELIER, VT (NEWS CENTER) -- Vermont utilities regulators have dealt a major setback to FairPoint Communications. The Vermont Public Service Board rejected the company's proposal to buy Verizon's landlines in Maine, Vermont and New Hampshire.
Echoing concerns raised by the staff of Maine's Public Utilities Commission, the Vermont regulators question FairPoint's ability to survive financially if the deal goes through.
Fairpoint would have to borrow $2.5 billion to make the purchase. The board says that could exert "significant financial pressure" when combined with operating costs and revenue projections.
The board said FairPoint is free to submit revisions to the plan that addresses the financial concerns. In Maine, such revisions were submitted, and the PUC has allowed the process to move forward. The commissioners are scheduled to meet again on December 26.
The deal needs the approval of regulators in all three states in order to go through.
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