This excerpt taken from the FRP 8-K filed Oct 26, 2009.
Chapter 11 Plan and Disclosure Statement. Within forty-five (45) days after the Petition Date (the Plan Deadline), FairPoint shall file the Plan and the disclosure statement for the Plan (the Disclosure Statement).
3. Chapter 11 Financing. Certain of the Steering Committee Lenders have agreed to provide a senior secured debtor-in-possession revolving credit facility (the DIP Facility) substantially on terms set forth in a term sheet annexed as Exhibit C to the PSA (the DIP Term Sheet) providing for extensions of credit in an aggregate principal amount not to exceed $75,000,000, with a letter of credit subfacility in an aggregate amount of $30,000,000, subject to certain conditions, including the receipt of credit approvals and the approval of the Bankruptcy Court. Letters of credit issued and outstanding under the Credit Agreement as of the Petition Date may be replaced, at the Companys option, by letters of credit issued under the DIP Facility.
4. Adequate Protection. In connection with the approval of the DIP Facility, the Company shall seek to grant the Lenders adequate protection in the form of replacement liens and superpriority claims as set forth in the DIP Term Sheet. FairPoint has advised the Consenting Lenders that the Company does not intend to pay interest under the Credit Agreement to the Lenders during the Companys chapter 11 cases.
5. Reorganized Company Capital Structure.