Maglan Capital Delivers Letter to FairPoint Communications CEO and Board of Directors

Further to our previous demands that the Board immediately (i) establish a program to repurchase Company shares on the open market, (ii) appoint a new member to the Board to be selected by Maglan, and (iii) form a special committee to review and consider strategic alternatives, with Maglan's Board appointee as the chair, we hereby demand, that the following members of the Board immediately tender their resignation:

• Dennis J Austin
• Michael J Mahoney
• David L Treadwell
• Wayne L Wilson

Since the Company's exit from Chapter 11 bankruptcy in 2011, there has been NO turnover in the Board's membership¹. In addition to long tenures, without the purchase of EVEN ONE SHARE of the Company's stock during the past three years, these directors have not been additive to the Company's strategy, are not critical to the Board in any way and have not been advocates for shareholder-rewarding activities. Furthermore, David Treadwell is the member of the Board of Directors for seven organizations, including, three public companies. 

To the extent that the Board is not immediately responsive to our collective demands, we are prepared to take any and all action necessary to ensure the best interests of shareholders are represented in the boardroom, including by calling a special meeting of shareholders to remove and replace members of the Board.  We do not believe that shareholders should continue to suffer under this Board's  watch by waiting until the next annual meeting to hold directors accountable.  As we have consistently stated, change is needed now.   We believe there are other shareholders of FairPoint who would support our efforts to call a special meeting to realize value for shareholders.

The Company and the Board should turn its attention directly to shareholders and, specifically, to unlocking shareholder value.  We strongly urge you to reconsider your uncooperative and non-constructive approach and instead, immediately engage with us to implement meaningful steps to enhance shareholder value.  We remind you that the Board's duties are to FairPoint shareholders. 

Sincerely,

cc:

Edward D. Horowitz 
Michael J. Mahoney 
David L. Treadwell 
Wayne L. Wilson 
Peter C. Gingold 
Dennis J. Austin 
Michael K. Robinson 
Peter D. Aquino­

Maglan Capital has retained Olshan Frome Wolosky LLP as its legal and strategic advisor in connection with its investment and involvement at FairPoint. 

About Maglan Capital

Maglan Capital is an event-driven investment fund with a core focus on all parts of the distressed cycle, investing in liquid instruments across the capital structure of companies approaching or experiencing financial distress, bankruptcy or restructuring.

Contact:

Jeff Siegel 
Monarch Communications
+1 (516) 569-4271
jeffs@monarchcomminc.com

¹ Other than the appointment of Peter C. Gingold upon Todd W. Arden's resignation in June 2012, both of whom are affiliated with Angelo, Gordon & Co.

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SOURCE Maglan Capital LP