Introduction
Alameda Power & Telecom (AP&T) is Alameda's municipally owned utility company providing power, Internet access, Cable TV and commercial high-speed data access to Alameda residents and businesses. It is governed by Alameda's Public Utilities Commission.
In 2006, a scandal erupted in the newspapers about the $80 million in debt that AP&T had amassed in the buildout of it's cable TV and Internet access business.
On November 12, 2008, AP&T announced at a public workshop that Comcast has made a bid of $17 million for the Cable TV and Internet access division. After adjustments, about $15 million of that money will go to pay off the bondholders who bought the 2004 Bond Anticipation Notes. While 95% of bondholders had agreed to sell the system and accept their pro-rated share of the $15 million as re-payment for their bonds, the City entered litigation with Nuveen Asset Management, two of whose funds bought $20 million worth of the bonds.
The City of Alameda struck first with a lawsuit, to set the jurisdiction for the case to California. See Nuveen's response to the City of Alameda's claims and their counterclaim here:
City of Alameda Lawsuit Against Nuveen
Nuveen Response to City of Alameda Lawsuit
Nuveen Counterclaim to City of Alameda Lawsuit
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