FairPoint agrees to pay $8 million in rebates for poor service
A FairPoint Communications sign stands outside the company headquarters in South Portland, Maine, Monday, Feb. 8, 2010. The company filed its bankruptcy reorganization plan, in which it gives 98 percent ownership of the company to creditors in exchange for them swallowing $1.7 billion in debt. (AP Photo/Pat Wellenbach)
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The Associated Press
AUGUSTA, Maine — Maine utility regulators says Charlotte-N.C. based FairPoint Communications will begin paying customer rebates in March because of the company's poor customer service.
The Maine Public Utilities Commission said a U.S. Bankruptcy Court judge on Tuesday approved an order that forces FairPoint to begin paying rebates in the form of $1.72 a line per month for 12 months - a total of more than $8 million.
The commission last November ordered the rebates because FairPoint failed to meet specific quality performance standards in 2008 and 2009. But the rebates were put on hold after FairPoint filed a motion asking that it not be forced to pay the rebates while it works its way through bankruptcy.
FairPoint, which filed for Chapter 11 bankruptcy in October, submitted its bankruptcy reorganization plan on Monday.
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