Overcoming months of delay, regional local exchange carrier Fairpoint Communications filed a reorganization plan with a New York bankruptcy court that would reduce the carrier’s debt load by two-thirds and give secured creditors an ownership stake of 92% in the post-bankruptcy entity. At the same time, Fairpoint reached settlements with the states of New Hampshire and Vermont that address commitments to service quality and to the provision of broadband services in those states. Buckling under a debt load of $2.8 billion that was incurred largely through the 2008 acquisition of land lines owned by Verizon Communications in New Hampshire, Vermont and Maine, Fairpoint—the nation’s seventh-largest fixed line carrier—filed for Chapter 11 bankruptcy protection in October. The company, however, has twice postponed the filing of its reorganization plan pending the completion of negotiations with labor unions and state regulators. Under the plan, nearly $1.8 billion of debt would be erased from Fairpoint’s balance sheet. Secured creditors would receive new shares of stock in the reorganized entity that constitute a 92% ownership stake, with unsecured creditors to receive the remaining 8%. The settlements reached with attorneys general in New Hampshire and Vermont would wipe out millions of dollars in fines assessed upon Fairpoint for failing to meet prior service quality obligations as long as Fairpoint meets all of its obligations for the current year. In New Hampshire, Fairpoint was granted an extension of time until March 21, 2015 to meet its broadband deployment commitments, and the company has agreed to spend $285.4 million on broadband facility construction over the next five years, in addition to the $56 million that the company has previously pledged to spend on such networks. The reorganization plan and settlement agreements are subject to final approval by the bankruptcy court and state regulators.