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Receiver, Staff Provide Plans for Chester, Pa., Bankruptcy, Takeover of Administrative Functions

Submitted by ckanon@abi.org on
At a livestreamed presentation yesterday, the Chester, Pa., state-appointed receiver and his staff outlined why they needed to file for bankruptcy and seek authority over all city administrative functions, the Delaware County Times reported. “We’ve had a lot going on,” Receiver Michael T. Doweary said, addressing the bankruptcy filing and on the filing that would grant his office final say over every administrative function pertaining to city operations. “I petitioned the federal courts to help Chester overcome its structural deficit,” he said. “The city cannot rely on a one-time influx of cash or one-time fixes, and at this rate, the city cannot sustain vital and necessary services unless something seriously is done to restructure.” Vijay Kapoor, the receiver’s chief of staff, said there would be more briefings in the coming weeks as more information is available. Kapoor also directed the community to the claims agent’s website, donlinrecano.com/chesterpa, and the receiver’s website and Facebook page for updated developments on the two court proceedings. On Nov. 8, Doweary petitioned the Commonwealth Court to modify the existing recovery plan to give him wider authority so that either he or Chief Operating Officer Leonard Lightner has the final say on city administrative functions. Kapoor said this filing was to deal with “operational impediments that the receiver has encountered in performing his duties under Pennsylvania’s Act 47.” On Nov. 10, the receiver filed for chapter 9 bankruptcy protection in the U.S. Bankruptcy Court for the Eastern District of Pennsylvania in light of a potential $46.5 million deficit next year, of which filings have stated $39.8 million is related to past-due pension payments.
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