July 2, 2008
iProvo Sale Has Loose Ends, but Deal Still On
By Donald W. Meyers, The Salt Lake Tribune
Jul. 2--PROVO -- City officials and Broadweave Networks executives were hoping to have the iProvo sale closed by Monday night.
One portion was resolved by deadline, however: The troubled fiber-optic network has essentially been turned over to the South Jordan-based company.
"They don't have the title to the car," Mayor Lewis Billings said Tuesday, but, he said, the company has taken over the network and has moved a group of telephone customers over to Broadweave's system.
Said Broadweave CEO Steve Christensen, "Today is the first day of having reliability in the network, and [of] finding out what is going on, what is working and where we need to take action."
Still to be done: a due-diligence analysis by Sorensen Capital, the venture-capital firm that is financing Broadweave's purchase. Plus, agreements with other service providers who will use iProvo's system need to be finalized.
Under the agreement with the city, Broadweave will start making payments on Provo's $39.6 million bond that initially paid for the fiber-optic network.
While there is still some risk, Christensen and Billings said they were confident that the deal would not fall through.
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