Green Isle attorney urges review of RS Fiber sale that could shift bond debt to cities

City Attorney Ken Jansen told the Green Isle City Council on Sept. 24 that RS Fiber has approached member cities seeking permission to sell its assets for what RS Fiber has described as about $14 million, while significant secured debt on the bonds would be paid first.

"They're seeking to sell for approximately $14 million," Jansen said, and he warned that "there's a very good likelihood that the cities are going to end up holding and being responsible for a massive amount of this bond amount." He said Green Isle’s share of outstanding RS Fiber debt is about a half‑million dollars, by his estimate, and that the total bonds across member cities are on the order of $7 million.

Jansen recommended the council ask RS Fiber for valuation documents and, if necessary, commission independent valuations or further analysis before the cities vote on approving the sale. He also urged the city to ask RS Fiber to slow the timeline so member cities can conduct due diligence.

Councilors agreed they were not comfortable making a decision without seeing appraisal or valuation materials. One council member said they would represent Green Isle at the regional meeting where the sale would be considered and asked to be provided with any materials before that meeting.

Jansen said some member cities have indicated they plan to vote against the sale. He cautioned that even if the sale proceeds, the distribution of proceeds and payment priorities are uncertain and could leave municipalities with substantial unpaid obligations.

Next steps the council discussed included formally requesting valuation documentation from RS Fiber, having a representative attend the regional meeting to register the city’s position, and following up with the city attorney if more formal legal review or protective language is needed. No formal motion on a final position was taken that night.