FairPoint delays cutover in Verizon deal

FairPoint Communications Inc. said Tuesday that it will delay a cutover related to its recent acquisition of Verizon Communications' landline operations in three New England states.

The telecom carrier said the delay, which pushes the cutover _ the point at which FairPoint would disconnect from all Verizon systems _ to November from September, is in the best interest of customers based on the schedule needed for regulatory review and FairPoint's current readiness.

In addition, a recent report from Liberty Consulting Group said that in order to cut over by the end of September, FairPoint would have to show cutover readiness by early July, and despite significant progress, that is unlikely to happen.

The new November cutover date will require FairPoint to show cutover readiness by early September, FairPoint said.

FairPoint said the extension will result in two additional monthly payments to Verizon of about $16.5 million but will not affect its compliance with its debt covenants.

Fairpoint completed its acquisition of Northern New England Spinco Inc., the company formed to hold the Verizon businesses in Maine, Vermont and New Hampshire, as of March 31.

The deal expanded FairPoint's footprint to 18 states, including about 1.6 million telephone lines and 230,000 high-speed Internet customers.

Fairpoint shares fell 9 cents to close at $7.36, while Verizon shares fell 10 cents to $35.79 in aftermarket trading, after falling 35 cents to $35.89 in the regular session.