OLDS — A deadline that may have a big bearing on the future of O-NET, the town’s community-owned high-speed internet as well as phone and TV service, is looming.
On June 25, a forbearance agreement expires.
That agreement gives the Olds Institute for Community and Regional Development (OICRD) and Olds Fibre Ltd. (OFL) time to find – as a town news release calls it – “alternative and replacement sources of financial support.”
The release, issued on May 28, also says the agreement gives time for the town to “undertake an independent financial review of the town’s investment in OICRD and subsequently O-NET.”
On May 22 last year, town council called on OICRD to repay a $14 million loan as part of a larger call for that entity’s loan refinancing to be “reorganized” and "additional process thereafter."
Several years ago, the town had arranged to obtain loans totalling $14 million and a guaranteed line of credit of up to $4 million to help to finance installation of fibre optic lines to homes and businesses throughout Olds to connect customers to O-NET. That entity is known as the Olds Connected Community Network (OCCN).
In its May 28 news release, the Town said “due to the level of debt carried by the Town to facilitate the financial supports, the debt limit that is imposed upon the Town under provincial legislation, and new funding demands, the financial support for the OCCN network has placed significant constraint on current and long-term planning for the Town of Olds,” hence the issuance of the forbearance agreement.
The release also said that agreement’s deadline has been extended three times as all those involved have looked for a way to “provide opportunity for capital investment to expand O-NET’s service.”
The release said "direct discussions continue” in an effort to find a solution and it added that the results of those discussions "will be presented to the Town and residents in the very near future.”
In an email, The Albertan asked town officials what will happen to O-NET customers after the June 25 deadline.
In a reply, chief administrative officer Michael Merritt wrote, “at this time we can not speak to this situation at this time due to non-disclosure agreements, however, this should not have an impact on the service to customers of O-NET.”
Find the full Town of Olds press release here.
