Boundless Broadband LLC and its affiliated debtors are seeking bankruptcy court approval to sell their fiber internet business in Vermont for $4.2 million in cash to a regional telecom provider, according to court documents filed on July 31.
The motion, filed in the United States Bankruptcy Court for the District of Delaware, requests authorization for the private sale of broadband assets to Selectronics Corporation, the parent company of Waitsfield-Fayston Telephone Co., without conducting a formal auction process. The debtors argue that the private sale represents the culmination of extensive marketing efforts and is the best path forward for maximizing creditor recoveries.
"The Broadband Business is noncore to the Debtors' larger business generation model and operates outside of the Debtors' core industry-leading, digital infrastructure consulting, design-build, and maintenance operation," the filing states. The assets include a fiber-to-the-home network serving approximately 400 active customers across about 1,200 residential and commercial locations in Lunenburg, Danville, and St. Johnsbury, Vermont.
Boundless Broadband, Tilson Technology Management, Inc., and Tilson Middle Street Holding, LLC filed for Chapter 11 protection on May 29, 2025, in an effort to preserve and maximize the value of their estates. The case is being jointly administered under Case No. 25-10948 before Judge Brendan L. Shannon.
The broadband network was developed during the COVID-19 pandemic with grants from the State of Vermont's CARES Act funding. The business currently generates approximately $300,000 in annual revenue from its subscriber base. According to court documents, however, "the regulatory environment in Vermont made private providers largely ineligible for state subsidy and TTMI's general liquidity pressures made additional network investment unfeasible."
The filing details an extensive marketing process that began in 2023 when the debtors worked with an independent investment bank to secure equity investment to finance the expansion of the broadband network. After those discussions failed, the company undertook a broader marketing process in the fall of 2023, engaging another investment bank that contacted approximately 25 firms. Despite these efforts, none of the firms were willing to engage in a transaction.
In summer 2024, the debtors switched strategies and began direct efforts to find a buyer, specifically targeting companies with operating synergies in nearby areas. Four additional industry participants were contacted, with two expressing interest. Ultimately, the debtors selected Selectronics Corporation's offer as the highest and best available.
"The Cash Payment from the Purchaser is a higher and better price than the alternative transaction that the Debtors considered after these chapter 11 cases were filed," the motion states. The alternative transaction would have involved a lower cash payment, a promissory note, and an "earn-out" component.
In an unusual request, the debtors are seeking authorization to pay a $150,000 break-up fee to Selectronics if a higher bidder emerges, despite the fact that they're pursuing a private sale without an auction process. The debtors argue that the break-up fee "is appropriate given the Purchaser's willingness to enter into the Purchase Agreement notwithstanding that higher and better offers may be received."
The filing also seeks approval to pay a $50,000 fee to an independent contractor who has been working with the debtors since November 2023. According to court documents, he led the marketing process that resulted in the purchase agreement, allowing the company to avoid "significant additional administrative expenses normally attendant to hiring an investment banker." The debtors note that an outside investment banking firm had proposed fees of $250,000 plus potentially another $150,000 for similar work.
The hearing on the sale motion is scheduled for August 21, 2025, with objections due by August 14. The debtors are represented by Saul Ewing LLP and Verrill Dana LLP.
This article was prepared using Stretto Conductor, our new AI-powered assistant that's here to help. Stretto Conductor was able to create this summary of a 31 page court filing in less than a minute. Always review the underlying docket filings for accurate information. The information and responses generated by Stretto Conductor may contain errors or inaccuracies and should not be relied upon as a substitute for professional or legal advice.