BURLINGTON TELECOM SALE INFORMATION
An Open Letter to the Residents of Burlington from Todd Schurz of Schurz Communications On Wednesday, December 27 the Burlington City Council voted to approve a deal with Schurz Communications, Inc. to buy Burlington Telecom. As the sale process moves toward completion, our staff will continue to do what we have always done – focus on providing great service to our customers and to our community. This webpage will be periodically updated to keep consumers informed throughout the sale and transition process. What’s Next?
- The City Council will vote on February 12 on whether to pursue entering into a Membership Interest Purchase Agreement with Schurz Communications, Inc.
- The Buyer (together with the City and Blue Water) will submit a petition to the Vermont Public Utilities Commission seeking a Certificate of Public Good within sixty (60) days of execution of the Asset Purchase Agreement. (See Section 9.03)
We value hearing what we can do to improve your overall experience with Burlington Telecom and welcome your feedback. Phone: 802-240-0007 Email: Contact Us In Person: 200 Church Street, 2nd Floor (at King St intersection) For monthly e-news updates, please contact Customer Service to confirm we have your current e-mail address on file. To review eliminated bids and other related documents CLICK HERE
FREQUENTLY ASKED QUESTIONS
Has Burlington Telecom been sold?
The agreement between the City of Burlington and Citibank utilizes financing provided by Blue Water Holdings LLC (“Blue Water”), an entity formed by local businessman Trey Pecor with the backing of Merchants Bank. In this transaction approved by the Public Service Board, Blue Water has purchased equipment from Citibank and other assets of Burlington Telecom, and leased all assets back to the City in a structure similar to the original Citibank lease. The City continues to control and operate BT, completing the sale transaction and transfer of assets. The Blue Water Agreement left the City with the choice of who will eventually buy BT. This critical provision gave the City four years to find a purchaser or partner with a vision for BT that is aligned with the City’s and one which will continue to provide a positive community and economic development impact.
Will this affect my service?
BT will continue to operate as usual with no change to your service during the completion of the sale transaction.
Do I need to find a new internet/cable/phone provider?
BT is here to stay. We will continue to provide all of the services customers expect and rely upon.
Will the $16.9M be paid back?
The settlement of the Citibank lawsuit and the Blue Water financing provide the best opportunity for the City to recover some of the $16.9 million. Following the completion of the sale, the City will receive twenty-five percent of net sale proceeds (after payment to Blue Water of the non-amortized balance of $6 million and other deal costs and deductions and a split with Citibank). The Schurz Asset Purchase Agreement also gives the City of Burlington an opportunity to retain a meaningful carried equity interest in Burlington Telecom.