A federal bankruptcy court has approved the sale of broadband assets in Vermont held by Portland-based IT firm Tilson to a Vermont-based telecommunications provider for $4.195 million in cash.
The approval, issued Aug. 18 by the U.S. Bankruptcy Court of the District of Delaware where Tilson is seeking Chapter 11 bankruptcy protection, clears the way for Waitsfield and Champlain Valley Telecom, based in Brattleboro, Vt., to buy the assets.
Proceeds from the sale will be paid to Tilson’s creditors, with the acquirer purchasing mainly assets without taking on any meaningful debt, according to a source.
Barring any extensions, the transaction should close no later than Sept. 5, according to the 69-page purchase document attached to the court’s order.
Chapter 11 case
Tilson, led by CEO Darrell Ingram since early 2024, filed for Chapter 11 bankruptcy protection earlier this year after the company’s largest client cancelled its contracts.
The former client, a developer of fiber and wireless networks called Gigapower, is a Dallas-based joint venture between telecoms conglomerate AT&T Inc. (NYSE:T) and New York-based investment company BlackRock Inc. (NYSE: BLK).
Tilson sued Gigapower last month for alleged breach of contract over more than $200 million in unpaid bills, while Gigapower denies the allegations.
Tilson’s intention to find a new owner was first disclosed in a June 13 court filing which spelled out the company’s plan to sell the business “as a going concern,” including the hiring of Woodward Park Partners LLC, a Bloomfield, Mich.-based investment bank, to lead the process.
In the Aug. 18 order approving the sale of some Tilson assets to Waitsfield and Champlain Valley Telecom, the bankruptcy court notes that the purchase agreement is fair and reasonable and that the sale is free and clear of all liens and claims.
The sale is not conditional on completion of the Chapter 11 process.
Family-owned firm
Waitsfield and Champlain Valley Telecom, whose roots go back to 1904, is a fourth-generation, family-owned telecommunications provider serving the Mad River Valley and central Champlain Valley regions of the Green Mountain State.
Representatives from the Vermont company were not immediately available to comment.
Tilson, incorporated in 1996, is a developer of fiber and wireless networks with a national footprint. The next scheduled hearing date in the bankruptcy case is Monday, Sept. 15.
Editor’s note: Article updated after Tilson clarified that the sale is for broadband assets in Vermont.