viNGN Unable to Pay $36 Million Loan, Battling Mounting Financial Challenges, CEO Says

The management of the Virgin Islands Next Generation Network does not believe they will be able to repay a loan worth some $36.8 million to the Public Finance Authority. The sum, once a bond used to match funds needed to establish viNGN over a decade ago, was converted into a loan after one year, in 2012.

Details of the loan, however, were apparently not transmitted to Stephan Adams, the agency’s CEO. The PFA, which also retains the option to convert the sum into equity, has reportedly not supplied the recipient of the funds with repayment details.

Despite several meetings between the two parties, Mr. Adams reported to the Committee on Budget Appropriations and Finance on Tuesday that “to date, the interest rate has not been determined and [an] amortization schedule has not been established.” In any case, he lamented that “based on our current fiscal standing, viNGN does not does not have, and does not perceive the ability to repay the $36.8 million loan without assistance,” much to the dismay of committee members.

Despite their best efforts to seek loan forgiveness from the PFA, Mr. Adams reported that viNGN has instead been directed to “seek federal grant opportunities to cover this debt.” Since Mr. Adams began his tenure as viNGN CEO in 2019, he says the loan has accrued no interest, and has no schedule detailing required monthly repayments. Instead, he was notified that the loan has “been held on our books.” Noting that he continues to raise that issue at meetings with the PFA to no avail, Mr. Adams complained that “we don't have clarity.”

Attempts to secure funding to pay off the loan — despite the lack of a repayment schedule from the PFA — have failed. Senator Ray Fonseca wondered whether they had explored any federal opportunities. Mr. Adams explained that while a USDA grant worth $15 million was identified, the nationally-available funds had already been allocated. “That was the only avenue that we found where we could get federal help,” he explained.