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UPDATE 1-FairPoint says defaults on credit facility

* Says did not make $28 mln interest and amortization payments

* Says did not make payments under swap agreements

Oct 1 (Reuters) - FairPoint Communications Inc FRP.N said it defaulted on its credit facility as it failed to make certain payments, a move that comes after it indicated earlier this week that it may file for bankruptcy protection under Chapter 11.

The rural telecom services provider did not make interest and amortization payments totaling $28 million due on Sept. 30, it said in a filing with the U.S. Securities and Exchange Commission.

FairPoint also failed to make payments due under swap agreements with Wachovia and Morgan Stanley amounting to $5.7 million and $8.3 million, respectively.

It estimates its aggregate liability under the Wachovia and Morgan Stanley swap agreements to be $52.0 million and $37.5 million, respectively.

Earlier this week, FairPoint said it signed a forbearance agreement with its lenders collectively holding more than 50 percent of the loans and commitments outstanding under the credit facility.

Under the agreement, the lenders have agreed not to exercise any actions such as accelerating the maturity of the loans until Oct. 30. [ID:nBNG371787]

As of Sept. 30, FairPoint had $2 billion of loans outstanding under its credit agreement.

Shares of the company were up 2 cents at 43 cents Thursday morning on the New York Stock Exchange. The stock traded as high as $8.88 in September last year. (Reporting by Manasi Phadke in Bangalore; Editing by Deepak Kannan)

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