Fairpoint Phone Co bankrupt [Telecom]
hanc...@bbs.cpcn.com
filing was anticipated. Apparently many knew from the start their
business plan was flawed.
They are asking for concessions from employees and creditors. IMHO,
unless the employees are getting grossly generous compensation, it
seems that it's not fair to hit them. The investors were the ones who
chose to go with a flawed plan; they should bear the losses.
In any event, it is always unfortunate when a large company goes
bankrupt. IMHO the business community, consumers, and investors all
ought to learn from such mistakes.
(Background information and comments appreciated.)
[public replies, please]
Eric Tappert
OK, I, as a Fairpoint shareholder, have been snookered twice by
Verizon. My Fairpoint shares were a direct result of Verizon's deal
to sell them the New England properties. Similar deal with Idearc.
Seems to me that the Verizon folks are pretty good at getting the most
for their troubled assests and leaving their shareholders holding the
bag....
Could it be that Verizon management knows what they are doing???
In any event, such is life.
ET
PS - I was "retired" due to the mess with the breakup of
Lucent/Western Electric. Maybe someday I'll learn that phones aren't
the way to go...
Steven
GTE and my GTE stock was converted to Verizon and has been diluted so
much. Each time I'm given other stock I converted it back to Verizon.
GTE so much cash and very little debit, its retirement was so well
funded that no funding was needed for over 10 years. The funds are not
under Verizons control so they are safe from plundering from Verizon.
--
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hanc...@bbs.cpcn.com
wrote:
> OK, I, as a Fairpoint shareholder, have been snookered twice by
> Verizon. �My Fairpoint shares were a direct result of Verizon's deal
> to sell them the New England properties. Similar deal with Idearc.
> Seems to me that the Verizon folks are pretty good at getting the most
> for their troubled assests and leaving their shareholders holding the
> bag....
Interesting point.
In the case of Idearc, small shareholders could sell their shares back
to the company. Presumably large shareholders could sell them on the
market.
I don't know if shareholders had a choice on whether to take the
sellouts.
Actually, I'm confused. Idearc was a new company created as a spinoff
by Verizon. (Still unclear why they went bellyup). Didn't Fairpoint
already exist?
Eric Tappert
Idearc was a brand new company invented by Verizon to take over the
yellow pages business, which was being killed by the internet.
Fairpoint was a small independent phone company that purchased
Verizon's rural New England facilities in a stock deal. The size of
Fairpoint increased tremendously and they had severe problems
transferring the records from Verizon's computer system to theirs.
The subsequent muddle cost them dearly in both customers and money.
Then the financial mess hit...
In any event, Verizon dumped businesses that were on the way out in
both cases.
ET
Steven
with major updates under way.