Provider may terminate service in Cascades, Rio Mar

EAST COUNTY — Residents of the Cascades and Rio Mar communities are worried they may soon be “in the dark” when it comes to phone, Internet and audio services.

The community’s voice, video and data provider, Capitol Infrastructure, doing business as Connexion Technologies, has filed for Chapter 11 bankruptcy protection in Delaware. The company’s liabilities are listed between $100 million and $500 million in its filing, which includes a dozen affiliates and subsidiaries.

Homeowners associations for Cascades and Rio Mar have a bulk agreement with the company through their original developer, Levitt and Sons, which now is bankrupt. Infrastructure is shared, although Cascades houses the majority of Capitol’s equipment in a building within the community.

“You pay for video and data through your association dues,” Cascades Homeowners Association President Debby Landes said. “Only telephone is done per household, but still through one vendor. Here we’re talking about the fundamental utilities. (Capitol Infrastructure) is looking to divest of everything.”

Auction bids for Capital Infrastructures assets are due Wednesday, May 30. An auction is set for Monday, June 4.

Considered by Landes to be the “stalking horse” of the auction, Hotwire Communications has put in a bid for some of the communities operated by Connexion. If the transaction is successful, the deal is expected to close at the end of June.

Landes said residents are worried the communities may be left, at least temporarily, without phone, Internet, television and call-out on their alarm systems, particularly if Hotwire’s bid proves unsuccessful.

A local provider, she said, likely would not be able to use Capitol’s existing infrastructure, and replacing it would be a time-consuming and costly process.

“No 9-1-1,” Landes said. “You’re talking about our front gates. It would be a tremendous nightmare for us, to put it mildly.

“We’re hoping for the best,” she said. “We anxiously await the outcome of an auction on June 4 to see if our contract is sold or rejected. If rejected, we may face serious service issues.”

The Cascades HOA has hired a Delaware-based bankruptcy law firm to assist the communities, as needed, Landes said. Rio Mar’s association is helping with attorneys’ fees, Landes said.

Contact Pam Eubanks at [email protected].