A year after FairPoint Communications Inc. filed for Chapter 11 bankruptcy a judge has agreed to allow it to exit bankruptcy in the hands of its lenders.

Even though there were objections from Verizon Communications Inc., Judge Burton R. Lifland of the U.S. Bankruptcy Court in Manhattan agreed to lift the bankruptcy after approving the plan. However, Verizon did say that it didn't oppose the plan itself, only the fact that it excluded any provisions for possible future claims against third parties that could arise.

The plan had already been voted on and approved by FairPoint creditors last May but it couldn't go forward without the final say of Vermont regulators. They asked FairPoint to revise its financial projections and, after finding satisfaction with the new plan, pushed it ahead.

The new plan says that lenders who are owed $2.1 billion will trade their debt in for a new loan term of $1 billion and 92 percent of the company's new stock. It also ensures that FairPoint will have more than enough cash to run its operations.

Have questions about Chapter 11 filings?  Contact the Malaise Law Firm to work with a Houston bankruptcy lawyer.