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Burlington reaches financing agreement on telecom network

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BURLINGTON, Vermont — The City Council in Burlington, Vermont, has approved a financial partner to assist with a settlement regarding its troubled provider of television, Internet and phone service.

Last month, Burlington Telecom reached a $10.5-million settlement with creditor Citibank. In 2009, Citibank sued the city alleging fraud and breach of contract in an effort to recover part of the $33.5 million it advanced to build the Burlington Telecom network.

The city terminated the agreement in 2010 when it was unable to make payments on the debt.

The City Council on Wednesday approved an agreement with Trey Pecor, president of Lake Champlain Transportation and Vermont-based Merchants bank.

Mayor Miro Weinberger said the agreement calls for paying $6 million of the $10.5 million settlement as the city seeks a long-term buyer for the network.

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