Subsequent Events

9 Months Ended

Sep. 30, 2014

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

On the Effective Date, as required by the Plan, the FairPoint Litigation Trust (the "Trust") was created and the Company transferred to the Trust the "Litigation Trust Claims", as defined in the FairPoint Litigation Trust Agreement among the Company, its subsidiaries and the trustee. The Trust thereafter settled the "Litigation Trust Claims", against Verizon Communications Inc. On October 16, 2014, from the settlement proceeds, the Trust returned to the Company the amount the Company had initially funded for the Trust, plus interest for the Trust, and also reimbursed the Company for its internal costs and time incurred. Accordingly, during the fourth quarter of 2014, the Company received a payment of $7.4 million.

The Company's collective bargaining agreements with two of its labor unions in northern New England covering approximately 1,800 employees in the aggregate expired on August 2, 2014. The Company is operating without contracts with these two labor unions in northern New England. On October 17, 2014 the two labor unions initiated a work stoppage. As of November 5, 2014, the work stoppage continues. The Company has executed its contingency plans and service to its customers continues. For further information, see note (9) "Employee Benefit Plans” and note (14) Commitments and Contingencies."