Dec. 4, 2006 — The latest wrinkle in the ongoing bankruptcy proceedings of Jeffrey Prosser and his companies is a filing by Prosser indicating that an unnamed "proposed governmental purchaser" is "expressing interest in acquiring [Prosser's] key telecommunications properties" in the Virgin Islands.
Prosser's lawyers filed a motion with the U.S. Bankruptcy Court, including a secret "letter of intent" from the aforementioned purchaser. The motion goes on to say the "purchase price… would provide the debtors [i.e., Prosser and his companies] with sufficient funding to perform their obligations under the settlement agreement."
The Source has previously reported rumors that the settlement agreement between the Prosser interests and two major creditors is in the $400-$500 million range. The two major creditors are Prosser's longtime bankers, Rural Telephone Finance Cooperative, and the Greenlight Companies, representing the former minority stockholders in Emerging Communications Inc., a Prosser-owned holding company.
So who is the interested "government purchaser?" As the Source has previously reported, there is only one government under the U.S. Flag that owns a phone company, that being American Samoa.
Further, V.I. senators made it clear last week that they are not considering a bill pushed by Gov. Charles W. Turnbull to consider such a purchase (See "Prosser Tells Court Legislature Would Consider a Bill to Purchase Vitelco; It Didn't").
Observers wonder if the outgoing governor has sent a note to Prosser that Prosser's lawyers could characterize as a letter of intent? No check need be attached to such a letter.
The secretive letter was attached to a motion by Prosser's lawyers to "Extend the Exclusivity Periods During Which Debtors May File a Chapter 11 Plan …."
Were the court to grant such a motion it would give the Prosser interests more time to seek funding for their agreement with their creditors.
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