Burlington Telecom misses another loan payment

Burlington Telecom didn’t make a $480,000 payment due last Sunday to CitiCapital, which included $386,000 in interest. However, Mayor Bob Kiss said Monday that there are ongoing negotiations with the lender.
Burlington hired the financial advisory firm Dorman and Fawcett to negotiate with CitiCapital on the repayment terms for the $33.5 million loan the New York-based lender made to BT in August 2007.
BT hasn’t made any interest and principal payments on the loan this year, which totals approximately $1.5 million in missed payments, according to Chief Administrative Officer Jonathan Leopold. Leopold mentioned that the city entered into a forbearance agreement with CitiCapital on July 1 that expired September 30 but was extended for an additional 30 days and expired on Sunday.
The Kiss administration spent about $17 million in public money between 2007 and late 2009 in violation of state regulations to sustain BT without the City Council or the council members of the Board of Finance knowing about it. This has resulted in a pending criminal investigation, a state audit of BT, a civil lawsuit in Chittenden Superior Court brought on by taxpayers, and downgrades to credit ratings of the city, the airport, and Burlington Electronic Department.
The Vermont Public Service Board ruled last month that BT was in violation of its certificate of public good.