Tilson Files for Chapter 11 Bankruptcy After Gigapower Contract Fallout
Tilson alleged that Gigapower failed to pay nearly $20 million in invoices.
WASHINGTON, May 30, 2025 – Telecom engineering and construction firm Tilson filed for Chapter 11 bankruptcy protection Thursday, citing financial distress triggered by the abrupt cancellation of major contracts with Gigapower, a joint venture between AT&T and BlackRock.
In a court filing Thursday, Tilson alleges that Gigapower failed to pay nearly $20 million in invoices tied to fiber construction projects in Arizona and Nevada. The company said it notified Gigapower in March of what it described as a “material breach.”
Three weeks later, Gigapower terminated all construction in Arizona under a “for convenience” clause – a provision that allows parties to exit contracts without alleging fault.
On April 29, the company canceled nearly all remaining construction in both Arizona and Las Vegas, Tilson alleges in a 22-page court filing.
"For nearly 20 years, Tilson has helped clients tackle their most difficult information and communications infrastructure challenges," Tilson CEO Darrell Ingram said in a statement. "Our core business is strong, but we need to reset after one client's failure to manage its relationships with its host communities and pay us for the work we performed materially changed our revenue expectations.,"
Ingram said his company’s work will eventually go on.
"The steps we are taking today represent a new beginning, not an end. We are fortunate that our lenders continue to believe in our business and support us financially, so we can overcome this setback and create a strong financial future for our company," he said.
Tilson said it was continuing operations and has secured $37.5 million in debtor-in-possession financing from existing lenders to support a swift reorganization. The company expects to emerge from bankruptcy in this year’s third quarter, which begins July 1.
Gigapower declined to comment on specifics, telling Mainebiz that it will address the matter in court and intends to maintain its construction commitments.
Former CEO Josh Broder loaned company $10 million
Court filings reveal that former Tilson CEO Joshua Broder, now head of the separate entity Tilson Infrastructure, personally loaned the company $10 million earlier this year to bridge financing gaps tied to delayed payments from Gigapower. That infusion ultimately proved insufficient as contract terminations accelerated.
Tilson, founded in 1996, employs about 600 people nationwide. It said it plans to pay vendors in full for post-filing work and has filed motions to ensure employee pay continues uninterrupted.
The case is being heard in the U.S. Bankruptcy Court for the District of Delaware.
Gigapower was launched in December 2022 between AT&T and BlackRock to deploy open-access fiber networks in markets outside of AT&T’s traditional 21-state footprint.
The venture was backed by a $1.5 billion investment commitment at launch, according to press reports. The entity is majority-owned by money manager BlackRock through its infrastructure fund, with AT&T providing technical and operational support, and leasing access on the resulting networks.
Initial builds were announced in Mesa, Chandler, and Gilbert, Arizona, as well as Las Vegas, Nevada – some of the regions now directly implicated in Tilson’s court filing.
On May 21, 2025, AT&T and Lumen announced a $5.75 billion agreement for AT&T to purchase Lumen’s fiber assets. AT&T plans to spin them off as an open-access network with AT&T as the anchor tenant – an arrangement similar to the Gigapower joint venture at issue in the Tilson bankruptcy.
