Cash Settlement Keeps Burlington Telecom Intact
The financially troubled Burlington Telecom has reached a settlement with Citibank that will allow it to keep its equipment, for now.
Lawyers for the city and Citibank agreed to the deal in federal court in Burlington on Friday.
It calls for the city-owned provider of telephone, cable TV and Internet service to set aside 60 percent of its net income, with just under $30,000 per month going to Citibank. The remainder goes into a court account.
Citibank's lawsuit to recover $33 million dollars for a lease purchase agreement on BT's equipment will continue but the deal ends immediate repossession of the equipment, buildings and vehicles.
Burlington City Attorney Ken Schatz told the Burlington Free Press that the temporary settlement would give the city more time to find a commercial partner for Burlington Telecom.