Dunnellon Sells Failed "Greenlight" Business in Effort to Avoid Bankruptcy
Published December 25th, 2013
DUNNELLON -- Following months of negotiations, the city of Dunnellon has sold its failed fiber optic business that's left the city teetering on the brink of bankruptcy.
On Monday, Dunnellon officially sold Greenlight Communications to Florida Cable Inc., a private company based out of central Florida.
The selling price was a little more than $1 million, far less than the nearly $8 million the city initially borrowed to finance the venture.
City leaders say the sale is just the first step towards righting the city's finances and preventing Dunnellon from going bankrupt.
"This is a very important first step for the city of Dunnellon, to get this sale done and allow us to move forward to hopefully come to some kind of a resolution with the remaining debt," said City Manager Eddie Esch.
Despite the sale, city officials still have to figure out how to pay back about $7 million in loans. After talks between the city and its lender -- Regions Bank -- broke down, the bank sued the city for defaulting.
City officials say Regions should have known the loan was bad before issuing it. The case is expected to be tied up in court for some time to come.
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