News


Winthrop Council votes 3-2 to restructure RS Fiber debt

2019-04-18

By Kurt Menk
Editor

The Winthrop City Council, during a special meeting on Monday night, April 15, voted 3-2 and approved a motion to approve a proposal by Hiawatha Broadband Communications, Inc. (HBC) to acquire the interests of ProGrowth Bank and Rural Electric Economic Development, Inc. at a total purchase price equal to 88 percent of the outstanding principal balance of all loans totaling $8,689,363.36. Eighty-eight percent of that amount equals a purchase price of $7,646,639.76.


As part of the motion, an additional $6 million in senior debt was added to bring the total senior indebtedness to $15 million for the net default amount, the vendor amount, and any unpaid interest added to the principal.


As a term of the sale, before or at closing, RS Fiber shall use funds on hand to satisfy all loans from the Winthrop, Buffalo Lake, Gibbon, and Fairfax Economic Development Authorities and related loans.

Find the complete story in the April 18, 2019 edition of the Arlington Enterprise.

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