Alameda P&T to sell cable assets to Comcast
After years of troubles and debts, Alameda Power & Telecom wants to sell off its Internet and cable TV system to Comcast for $17 million.
Last fall AP&T proposed three options to get out of its 10-year mess: keep the network it had built and refinance its 2004 notes; keep the system, refinance the 2004 notes and add voice; or, just sell the network. Three bids were offered for the network, and if the Public Utilities Board and the City Council approve the deal next week, Comcast could take over the operation next Friday.
However, the venture is still going to take losses. The city originally planned to invest $10 million and to provide up to $20.5 million in financing. City-owned AP&T transferred in another $44 million, but the municipality will not be repaid that amount.
AP&T was facing a $33 million bond payment in June. Comcast will make bondholder payments of at least $15 million under the deal, but that won't resolve lawsuits hanging over the utility or the costs the utility will have to pay to close the deal.
The AP&T system currently has around 9,500 cable and 6,600 Internet customers..
- San Jose Mercury News opines on Alameda/Comcast deal.