Washington Park meets deadline in bankruptcy filing - KMOV.com

Washington Park meets deadline in bankruptcy filing

(KMOV) -- Trustees in the Village of Washington Park have come to an agreement that will allow the town to meet a deadline in their bankruptcy case. The village was in danger of not meeting their deadline and losing bankruptcy protection this week. Losing bankruptcy protection would have meant that the businesses, people, and agencies owed money could seize village funds and assets - effectively shutting down the village.

The village is over three million dollars in debt and filed for Chapter 9 bankruptcy last July. Chapter 9 allows municipalities to continue to operate and maintain their assets while restructuring.

This week, the village nearly missed a deadline to submit a plan of adjustment to the bankruptcy court. The plan of adjustment is a critical step in the bankruptcy process. A judge gave the village an extension in April and allowed the village until August 20th to turn in the filing. The judge wrote in court documents that no other extensions would be given.

According to Mayor Cynthia Stovall-Hollingsworth, three trustees did not attend Tuesday's board of trustees meeting to vote on the plan of adjustment. Mayor Stovall-Hollingsworth said the trustees did not show up because of a dispute over a village employee.

The political infighting ended on Wednesday evening, when the required number of board members signed off on the plan of adjustment.

The board made the announcement during a community meeting Thursday night.

The bankruptcy proceedings will continue. Mayor Stovall-Hollingsworth said the village's attorney expected the process to continue through the first of the year. At that point, the mayor said the village would have a fresh start.

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