Kentucky town becomes first since Detroit to declare bankruptcy

Justice League

A small Kentucky town is about to join a rather unfortunate club by becoming one of the few municipalities to file for bankruptcy protection.

According to a Bloomberg report, Hillview, Kentucky, filed for bankruptcy this week, becoming the first municipality to file for bankruptcy since Detroit famously did in 2013.

From the Bloomberg report:

Hillview, which faced legal damages it couldn’t afford, is only the third Chapter 9 filing this year, following an Oklahoma hospital and a special district in California.

According to the Bloomberg report, the issue that caused the town of 8,000 to declare bankruptcy was contract dispute with a local company, Truck America Training, over a land sale.

Again, from Bloomberg:

In February, Standard & Poor’s lowered its rating to junk after the city unsuccessfully appealed a court ruling ordering it to pay $11.4 million in damages to the company.

Hillview estimated its liabilities…

View original post 32 more words

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s