Commitments and Contingencies

9 Months Ended

Sep. 30, 2013

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

(a) Leases

The Company does not have any leases with contingent rental payments or any leases with contingency renewal, purchase options or escalation clauses.

(b) Legal Proceedings

From time to time, the Company is involved in litigation and regulatory proceedings arising out of its operations. The Company's management believes that it is not currently a party to any legal or regulatory proceedings, the adverse outcome of which, individually or in the aggregate, would have a material adverse effect on the Company's financial position or results of operations. Notwithstanding that the Company emerged from Chapter 11 protection on January 24, 2011, one of the Chapter 11 Cases (Northern New England Telephone Operations LLC - Case No. 09-16365) remains open.

(c) Restricted Cash

As of September 30, 2013, the Company had $2.3 million of restricted cash, of which $0.1 million is reserved for payment of outstanding related bankruptcy issues (the "Cash Claims Reserve"), $1.6 million is reserved for broadband build-out in New Hampshire and $0.6 million is restricted for other purposes.

During the nine months ended September 30, 2013, $0.6 million of the Cash Claims Reserve was released due to favorable resolution of claims, $2.8 million of restricted cash reserved for broadband build-out in Vermont was utilized and $1.7 million of restricted cash reserved for broadband build-out in New Hampshire was utilized.

(d) Magnitude of Bankruptcy Claims

Claims totaling approximately $4.9 billion were filed with the Bankruptcy Court against the Company. As of November 1, 2013, through the claim resolution process, $3.8 billion of these claims have been settled and $1.1 billion of these claims have been disallowed by the Bankruptcy Court. Additionally, $15.2 million of these claims have been withdrawn by the respective creditors. The disallowance of one claim in the amount of $0.2 million has been appealed by the claimant.