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Kentucky Town Files for Chapter 9

Submitted by jhartgen@abi.org on

Hillview, Ky., yesterday filed for chapter 9 protection, becoming the first city to file for bankruptcy since Detroit did two years ago, Bloomberg News reported yesterday. Hillview’s financial distress stemmed from a contract dispute with a local company, Truck America Training, over a land sale. 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, 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.